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Financial Statements Review

Total questions: 12

Worksheet time: 10mins

Name
Class
Date
1.
The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the: 
a)

Balance Sheet

b)

Statement of Retained Earnings

c)

Statement of Cash Flows

d)

Income Statement

2.
The income statement can be expressed as an equation:
a)

Income = Income - Expenses

b)

Revenue - Expenses = Net Income (Loss)

c)

Revenue + Expenses = Income/Loss

d)

Expenses = Net Income + Revenue

3.
Examples may include salaries, utilities, rent, insurance, and office supplies.
a)
Revenue
b)
Expense
c)
Net Income
d)
Net Loss
4.

This document communicates what the entity owns in terms of assets, what it owes in the terms of liabilities, and the difference between those two which represents what the owners of the company are entitled to.

a)

Income Statement

b)

Balance Sheet

5.

What a company owes to creditors:

a)

Assets

b)

Liabilitites

c)

Equity

6.

"Assets = Liabilities + Equity" can be displayed on which financial statement?

a)

Balance Sheet

b)

Income Statement

c)

Statement of Owner's Equity

d)

Neither

7.
What are assets?
a)
What a company owns; anything of value owned by a business.
b)
Costs of operating a business.
c)
Detailed plans for the financial needs of individuals, families, and businesses.
d)
Differences between actual and budgeted performance.  
8.
What are liabilities?
a)
The money paid to employees.
b)
Costs of operating a business.
c)
The act of buy items. 
d)
What a company owes.
9.

What is owner's equity?

a)

The value of the business after liabilities are subtracted from assets; the value of the owner's investment in the business.

b)

What a company owes.

c)

Documents that are used to record and analyze the financial performance of a business.

d)

All income a company receives overtime.

10.

Every financial statement has a heading that indicates the name of the company, title of the report, and the date.

a)

True

b)

False

11.

If a company has more expenses than revenue for the period, it has a ____.

a)

Net Income

b)

Net Loss

12.

If a company has more revenue than expenses for the period, it has a ____.

a)

Net Income

b)

Net Loss