WorksheetsFinancial Statements Activity
Total questions: 25
Worksheet time: 17mins
1. Which financial statement reports the revenues and expenses for a period of time such as a year or a month?
Balance sheet
Income Statement
Statement of Cash Flows
Statement of Retained Earnings
2. Which financial statement reports the assets, liabilities, and stockholders’ (owner’s) equity at a specific date?
Income Statement
Balance Sheet
Statement of Cash Flows
Statement of Retained Earnings
3. Under the accrual basis of accounting, revenues are reported in the accounting period when which of the following occurs?
Cash is received
Services or goods are delivered
Unearned Revenues is what type of account?
Asset
Liability
Income
Owner's Equity
In an accounting equation, liabilities and owner's equity is always equal to what?
Retained Earnings
Liability
Assets
Expenses
8. Represent the total monies owed the firm by its customers on credit sales
(a)
Are short-term liabilities which should be paid within a year or less
(a)
Are very liquid short-term investments such as treasury bills or certificates of deposit, held by the firm. It is viewed as “near cash”
(a)
Is the loss of value of assets due to wear and tear, age, or obsolescence
(a)
Are noncurrent resources that do not have physical substance
tangible assets
royalties
intangible assets
fixed assets
Liabilities often have the word ___________ in their account title
account
payable
expense
income
Obligations (amounts owed) are reported on the balance sheet and are referred to as
.
(a)
When cash is received, the account Cash will be
.
credited
debited
as income
as expense
When a company pays a bill, the account Cash will be
.
debited
credited
as income
no entry
What will usually cause an asset account to increase?
debit
credit
none
expense
The normal (a) of any account refers to the side of the account – debit or credit where increases are recorded.
Revenues minus expenses equals
.
cost of goods sold
net income
sales
expense
Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on
the balance sheet and are referred to as
liabilities
assets
retained earnings
owner's equity
Reconciles the net income earned during a given year, and any cash dividends paid, with the change in retained earnings between the start and the end of that year. A shortened form of the statement of stockholder’s equity
Income Statement
Balance Sheet
Statement of Retained Earnings
Statement of Cash Flows
All are categories of cash flows except
Operating activities
Production activities
Financing activities
Investment activities
A method which derives the net cash provided by (used in) operating activities by adjusting profit for income and expense items resulting from cash transactions
(a)
Decrease in any asset is
an inflow
an outflow
deduction
an income
Dividends paid
an inflow
an outflow
an expense
an income
Is a summary of the cash flows over the period of concern
(a)
The entity’s net cash provided by (used in) operating activities is obtained by adding the individual operating cash inflows and then subtracting the individual operating cash outflows
direct method
indirect method
cash method
immediate method
