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Chapter 19 - Financial Statements

Total questions: 19

Worksheet time: 10mins

Name
Class
Date
1.

The income statement consists of Operating Activities, Financing Activities, and Investment activities.

a)

True

b)

False

2.

Which of the following are classified as equity? Choose 2

a)

Mortgages

b)

Capital Stock

c)

Retained earnings

d)

Short-term notes

3.

An amount earned by a corporation and not yet distributed to stockholders.

a)

retained earnings

b)

dividends

c)

purchases allowance

d)

sales return

4.

The value of the stockholders' claims to the assets of a corporation is known as

a)

stockholder's equity

b)

stakeholder's equity

c)

retained earnings

d)

liabilities

5.

The percent of property, plant and equipment to total assets is an example of:

a)

vertical analysis

b)

solvency analysis

c)

profitability analysis

d)

horizontal analysis

6.

The analysis of increases and decreases in individual items in comparative financial statements is called:

a)

vertical analysis

b)

solvency analysis

c)

profitability analysis

d)

horizontal analysis

7.

These are used by investors, market analysts, and creditors to evaluate a company's financial health and earnings.

a)

Statement of Financial Position

b)

Financial Statements

c)

Balance Sheet

d)

Cash flows

8.

each amount on a financial statement is compared with its corresponding amount on the previous statement

a)

horizontal analysis

b)

vertical analysis

9.

each dollar amount on a financial statement is also stated as a percentage of a base amount on the same statement

a)

horizontal analysis

b)

vertical analysis

10.

The ownership of a corporation is represented by shares of stock

a)

True

b)

False

11.

The Retained Earnings account always increases at the end of the fiscal period.

a)

True

b)

False

12.

Sales Discounts is a contra account of Sales

a)

True

b)

False

13.

Capital Stock is the only general ledger account classified as stockholders' equity

a)

True

b)

False

14.

The source of information for preparing the income statement is the general ledger.

a)

True

b)

False

15.

The first "calculation" in the Cost of Merchandise Sold section of the income statement is...

a)

Cost of Delivered Merchandise

b)

Net Purchases

c)

Cost of Merchandise Available

d)

Cost of Merchandise Sold

16.

The second "calculation" in the Cost of Merchandise Sold section of the income statement is...

a)

Cost of Delivered Merchandise

b)

Net Purchases

c)

Cost of Merchandise Available

d)

Cost of Merchandise Sold

17.

On the balance sheet...

a)

Assets = Liabilities + Equity

b)

Assets + Liabilities = Equity

c)

Assets - Liabilities = Equity

d)

Assets = Liabilities - Equity

18.

Where do you find the beginning balance for Retained Earnings?

a)

worksheet

b)

income statement

c)

statement of retained earnings

d)

balance sheet

19.

Where do you find the ending balance for Retained Earnings?

a)

worksheet

b)

income statement

c)

statement of retained earnings

d)

balance sheet