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WorksheetsFinancial Statement
Total questions: 38
Worksheet time: 23mins
What category does 'Accounts receivable' belong to?
Expense
Asset
Liability
Revenue
'Cash and cash equivalents' fall under which category?
Revenue
Liability
Asset
Stockholders' equity
What is the category for 'Net sales'?
Asset
Revenue
Expense
Liability
'Taxes payable' is classified under which category?
Liability
Expense
Asset
Stockholders' equity
Where does 'Retained earnings' belong?
Expense
Liability
Stockholders' equity
Revenue
What is the correct category for 'Cost of products sold'?
Revenue
Expense
Asset
Liability
'Selling, general, and administrative expense' falls under which category?
Asset
Liability
Expense
Revenue
What category does 'Income taxes' belong to?
Expense
Liability
Revenue
Asset
'Accounts payable' is an example of what category?
Liability
Stockholders' equity
Expense
Asset
In which category would you classify 'Equipment'?
Expense
Revenue
Asset
Liability
'Long-term debt' belongs to which category?
Liability
Stockholders' equity
Expense
Asset
What is the correct category for 'Inventories'?
Expense
Liability
Asset
Revenue
'Interest expense' is classified as what?
Asset
Revenue
Liability
Expense
What document reports a company's assets, liabilities, and stockholders' equity?
Income statement
Balance sheet
Retained earnings statement
Cash flow statement
If a company is owed money by customers, what is this called?
Accounts payable
Notes payable
Accounts receivable
Retained earnings
What is the fundamental accounting equation?
Assets = Liabilities + Stockholders' Equity
Revenues - Expenses = Net Income
Assets - Liabilities = Equity
Liabilities = Assets - Stockholders' Equity
When a business borrows money from a bank, what account is created?
Accounts receivable
Notes payable
Retained earnings
Liabilities
What term refers to the cumulative earnings of a company that haven't been distributed to owners?
Retained earnings
Stockholders' equity
Net income
Assets
How do you define probable debts or obligations to be settled with assets or services?
Retained earnings
Liabilities
Stockholders' equity
Notes payable
What do you call financing provided by owners and business operations?
Notes payable
Retained earnings
Stockholders' equity
Liabilities
Which equation is used to calculate net income?
Assets = Liabilities + Stockholders' Equity
Revenues - Expenses = Net Income
Assets - Liabilities = Equity
Revenues + Expenses = Profit
If a financial statement reports data as of a specific date, which document is this?
Income statement
Statement of cash flows
Balance sheet
Retained earnings statement
Calculating Net Income Given the following data: Total Revenues: $85,000 Total Expenses: $72,500 What is the Net Income?
$10,500
$12,500
$13,500
$15,500
Calculating Total Liabilities Given the following data: Total Assets: $120,000 Stockholders' Equity: $85,000 What is the Total Liabilities?
$35,000
$45,000
$50,000
$55,000
Calculating Stockholders' Equity Given the following data: Total Assets: $150,000 Total Liabilities: $60,000 What is the Stockholders' Equity?
$80,000
$85,000
$90,000
$95,000
Calculating Total Assets Given the following data: Total Liabilities: $40,000 Stockholders' Equity: $75,000 What is the Total Assets?
$110,000
$115,000
$120,000
$125,000
Calculating Net Loss Given the following data: Total Revenues: $60,000 Total Expenses: $75,000 What is the Net Loss?
$10,000
$12,000
$15,000
$20,000
Is Accounts Payable CR/DR?
(a)
Is Retained Earnings CR/DR?
(a)
Is accrued expenses payable CR/DR?
(a)
Is properties CR/DR?
(a)
Is inventory CR/DR?
(a)
Is Notes Receivable (Due in Five Years) CR/DR?
(a)
Is Long-Term Debt CR/DR
(a)
Is Accounts Receivable CR/DR?
(a)
When does a company recognize expenses?
As soon as they make products, even if they're not sold yet.
Only when the products are sold and generate revenue.
When they buy materials for making products.
When inventory is stored in the warehouse.
If Apple makes 50,000 iPhones this month but only sells 10,000, what happens to the costs of the remaining 40,000 iPhones?
They are recognized as expenses immediately.
They are considered a loss.
They stay in the inventory balance on the balance sheet.
They are recorded as revenue.
Why doesn't making products and holding them as inventory increase expenses?
Because the company hasn't sold the products yet.
Because inventory isn't recorded in the financial statements.
Because making products automatically increases revenue.
Because expenses are only recorded at the end of the year.
