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Income Statement Summative Test 3

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

1. These are inflows of cash and promises of cash (accounts receivable) for goods or services sold to customers.

 

a)

assets  

b)

expenses

c)

capital  

d)

revenues

2.

2. This is one of the three important financial statements used for reporting a company's financial performance over a specific accounting period.

a)

  assets  

b)

expenses

 

c)

  balance sheet  

d)

income statement

3.

3. This something that comes in as an addition or increase, especially by chance.

 

a)

balance sheet  

b)

income

 

c)

expense  

d)

income statement

4.

4. These are goods or services used or consumed in operating your business.

 

a)

assets  

b)

operating expense

 

c)

capital 

d)

none of these

5.

5. These are expenses that directly relate to the selling of your product or service.

 

a)

administrative expenses  

b)

marketing expenses

 

c)

  Electricity Expenses  

d)

none of these

6.

6. These are expenses that do not directly relate to the selling of your product or service; however, they are necessary in operating the business.

 

a)

administrative Expenses 

b)

marketing expenses

 

c)

electricity expenses  

d)

none of these

7.

7. These are examples of administrative expenses.

 

a)

bank charges expense, cash

 

b)

building, shipping expense

 

c)

office salaries expense, telephone expenses

 

d)

sales income, utilities expense

8.

These are examples of operating expenses.

 

a)

advertising expense, sales promotion expense

 

b)

brochure and pamphlet development expense, land

c)

  c. capital, loan

 

d)

sales force salary expenses, bank notes

9.

9. These are the two important sections of income statement.

 

a)

asset and expense  

b)

income and asset

 

c)

capital and expense  

d)

income and expense

10.

10. These are accounts not involved in income statement.

 

a)

cash and account payables

 

b)

professional income and salary expenses

c)

interest income and telephone expenses

 

d)

service income and depreciation expense