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Worksheets

Financial Statements

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

The line on the balance sheet called ________ represents the entire book value of the residual ownership of a corporation.

a)

Total equity

b)

Total long-term liabilities

c)

Total assets

d)

Retained Earnings

2.

On a balance sheet, ________ is (are) reported with fixed assets.

a)

intangible assets

b)

accounts payable

c)

preferred stock

d)

inventory

3.

The balance sheet reports assets in order of:

a)

increasing size

b)

book value

c)

decreasing liquidity

d)

increasing liquidity

4.

If a firm is profitable and pays income taxes, depreciation expense:


a)

decreases both operating income and net income.

b)

increases net fixed assets.

c)

is a noncash expense that increases net operating income.

d)

decreases net fixed assets, net income, and operating cash flows.

5.

If total assets increase:

a)

net working capital must also increase.

b)

stockholders’ equity must also increase.

c)

the change must be offset by an equal increase in liabilities and stockholders’ equity.

d)

net income must be positive.

6.

Ivan's, Incorporated, paid $476 in dividends and $583 in interest this past year. Common stock increased by $193 and retained earnings decreased by $119. What is the net income for the year?

a)

$476

b)

$357

c)

$583

d)

$776

7.

You find the following financial information about a company: net working capital = $1,059; fixed assets = $6,153; total assets = $8,574; and long-term debt = $4,593. What are the company's total liabilities?

a)

$7,362

b)

$5,955

c)

$5,652

d)

$8,274

8.

A company has net working capital of $726. Long-term debt is $4,159, total assets are $6,309, and fixed assets are $4,029. What is the amount of total liabilities?

a)

$5,583

b)

$4,885

c)

$5,713

d)

$8,188

9.

A firm has common stock of $86, paid-in surplus of $230, total liabilities of $390, current assets of $350, and net fixed assets of $560. What is the amount of the shareholders' equity?

a)

$510

b)

$170

c)

$910

d)

$520

10.

At the beginning of the year, a firm has current assets of $317 and current liabilities of $221. At the end of the year, the current assets are $471 and the current liabilities are $261. What is the change in net working capital?

a)

$114

b)

$0

c)

$154

d)

$194