WorksheetsReview- Financial Statements Quiz
Total questions: 34
Worksheet time: 17mins
What are the accounting reports that provide financial information of transactions of the business that have been recorded and summarized?
Financial Statements
Balance Sheet
Statement of Owner’s Equity
Statement of Cash Flows
What is this financial document that summarizes the items affecting the capital account of the business?
Statement of Owner’s Equity
Balance Sheet
Statement of Owner’s Equity
Profit and Loss Statement
What financial statement gives investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders?
Balance Sheet
Statement of Owner’s Equity
Statement of Cash Flows
Income Statement
What document contains a summary of the owner’s investments?
Statement of Owner’s Equity
Balance Sheet
Statement of Cash Flows
Income Statement
Which of the following items would be classified as an investing activity on the statement of cash flows?
Purchasing property and equipment
Payment for salaries, cash received from sale of goods
Proceeds from bank loan
Payment for taxes
Which among the following items should NOT be included in the operating activities on the statement of cash flows?
Buying of production equipment
Payment for salaries
Received cash from customers
Payment for supplies
If a cashflow forecast suggests that a firm will run out of cash, which would help the problem?
Delay paying suppliers
Pay suppliers immediately
Repay a bank loan
Purchase more fixed assets
Read the following statements. Which is not true in preparing financial statements?
A net loss in the worksheet is entered in the debit column of the Income Statement and credit column of Balance Sheet.
When the Income Statement credit column total is greater than the Income Statement debit column total on a worksheet, the business has a Net profit.
The general ledger account titles are listed and posted in the Trial Balance.
On a worksheet, the balance of the owner’s capital account is extended to the balance sheet credit column.
Which of the following statements is correct?
If it is a revenue or expense, extend to income statement columns; otherwise, extend the accounts to balance sheet columns.
Cash account up to drawing account are extended to the income statement column
A net profit in the worksheet is entered in the credit column of the Income statement and debit column of the Balance Sheet
A credit in the trial balance and a debit in the adjustment column mean that we have to add the debit and credit and place the total in the column with a greater value.
Read the following statements. Which of the following statements is True in preparing financial statements?
When the Income Statement credit column total is greater than the Income Statement debit column total on a worksheet, the business has a net profit
A net loss in the worksheet is entered in the credit column of the Income Statement and credit column of Balance Sheet.
The general ledger account titles are listed and posted in the journal
On a worksheet, the balance of the owner’s capital account is extended to the balance sheet debit column
Which of the following statements is not correct?
Cash account up to drawing account are extended to the income statement column
If it is revenue or expense, extend to the income statement columns, otherwise, extend the accounts to balance sheet columns.
A net profit in the worksheet is entered in the debit column of the Income Statement and credit column of the Balance Sheet.
A credit in the trial balance and a debit in the adjustment columns mean that we have to subtract the debit and credit and place the amount in the column with the greater value.
Which of the following items would be classified as financing activities on the statement of cash flows?
Proceeds from borrowings from bank
Payments for utilities
Payment received from customers
Buying of equipment
Which of the following items would be classified as operating activities on the statement of cash flows?
Payment for salaries
Buying of production equipment
Payments for bank loan
Withdrawal of the owners
All of the following describes the opening balance except:
The total of the trial balance
The balance that is brought forward at the beginning of an accounting period from the end of a previous accounting period
The amount of funds in a company’s account at the beginning of a new financial period.
The first entry in the accounts when a company is first starting up
Which of the following items should not be classified as financing activities on the statement of cash flows?
Proceeds from borrowings
Payment for utilities
Drawing of the owner
Payment for bank loan
Which of the following is true about the opening balance?
The balance that is brought forward at the beginning of an accounting period from the end of a previous accounting period
The totals of the trial balance
The amount of fund in a company’s account at the end of the accounting period
The last entry in the accounts when a company is first starting up
Which of the following is not a revenue item?
Receipt of loan
Service fees received
Cash received from customers
Interest received
The link between the Profit and the Balance Sheet is___
The profit or loss affects the owner’s equity section of the balance sheet
The loss is subtracted from the customers
The profit is added to the liabilities
The profit or loss is included in the liabilities section
What is the basic purpose of an Income Statement?
To report the business’s profit performance over the period
To report the financial position of the business
To repeat the profit and loss summary accounts
To show the difference between net profit and net profit
What is the basic purpose of a Balance Sheet?
To report financial position of the business
To repeat the profit and loss summary accounts
To show the difference between net profit and net loss
To report the business’s profit performance over a period of time
Which of the following is Not an expense?
Money owed to the bank
Money spent on the general operation of the business
Money paid for the salary and wages
Money used on deliveries
Compute for the net income of the business with a revenue of 71,300 and a total operating expense of 32,250.
39,050
35,090
39,000
39,250
Compute for the total operating expenses of the business with a revenue of 75,300 and net income of 52,250.
23,050
25,050
23,550
23,000
Compute for the gross revenue of the business with a net income of 61,500 and total operating expenses of 58,250.
119,750
119,650
119,550
129,750
Solve for the net income/net loss of the business with a revenue of 75,300 and total expenses of 152,250.
Net loss: 76,950
Net income: 23,050
Net loss: 23,050
Net income:76,950
Compute for the net income of the business with a revenue of 71,300 and total operating expenses of 32,250.
39,050
35,090
39,000
39,250
The four balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders.
True
False
Financial performance is assessed by giving the summary of how the business incurs its revenue and expenses through both operating and non-operating activities.
True.
False.
The Financial Statements have no more debits and credits because it is already a formal statement showing the results of the operation.
True.
False.
You are presented with a financial statement and from it you can tell what the business owed. By studying the information in the statement, you can tell what the business owns, and what it owes as of a certain date. You are looking at a_____
Balance Sheet
Income statement
Assets
Capital
This document communicates what the entity owns in terms of assets, what it owes in terms of liabilities, and the differences between those two which represents what the owners of the company are entitled to.
Balance Sheet
Income Statement
Statement of Cash Flows
Statement of Equity
The difference between what the entity owns and what it owes represents the owner’s share of the company.
Owner’s Equity
Liability
Assets
Net Income
These are equal to the liabilities of the company plus the owner’s equity.
Assets
Liabilities
Owner’s Equity
Net Income
When you subtract the equity from the assets, you will determine the amount of the ______
Liabilities
Owner’s Equity
Assets
Net Income
