WorksheetsIntermediate Accounting Chapter 4
Total questions: 14
Worksheet time: 2hrs 20mins
Which of the following terms is also used as a heading for an income statement?
Statement of Cash Flows
Statement of Business Activities
Statement of Performance Indicators
Statement of Operations
The purpose of an income statement is to
report the cash inflows and cash outflows for the period.
report the risk involved in operating the business for the reporting period.
report assets, liabilities, and owners' equity for the period.
summarize the profit-generating activities that occurred during a particular reporting period.
The purpose of the statement of cash flows does NOT include which of the following?
provide information about cash disbursements that occurred during the period.
provide information about the investing activities that occurred during the period.
provide information about the expenses that occurred during the period.
provide information about cash receipts that occurred during the period.
provide information about the financing activities that occurred during the period.
Which of the following is the main source of revenue for merchandising companies like Walmart?
sales revenue from selling merchandise
investment income
service fees
rental income
The outflows of resources incurred while generating revenue are referred to as ______.
Expenses
Revenues
Gains
Losses
Statement of operations and statement of earnings are additional titles for the ______.
Income statement
Statement of cash flows
Balance sheet
Statement of shareholder's equity
The income statement is considered most useful for predicting ______
future dividends
future borrowing potential
future profitability
future asset base
The purpose of the statement of cash flows is to deliver insights into the company's:
cash receipts and cash disbursements during a period.
income and related expenses during the period.
assets used during the period.
assets, liabilities, and stockholders' equity used during the period.
Which of the following is an increase in equity from a peripheral or incidental transaction that is included in income from continuing operations?
other comprehensive income
Loss
Revenue
Gain
If a causal relationship cannot be established between revenues and expenses, which of the following does NOT occur?
Allocate the expense over several periods.
Record the expense as incurred.
Relate the expense to a particular period.
Match the revenue with the expense.
Revenues, expenses, gains, and losses that will likely continue in future periods make up what?
Income from discontinued operations
Gross margin
Income from continuing operations
Gross revenue
Which financial statement is used to forecast a company's future profitability and cash-generating potential?
statement of stockholders' equity
statement of financial position.
Income statement
Balance Sheet
Which of the following items are NOT reported as components of operating income for most manufacturing and merchandising companies?
Interest Expense
Selling Expenses
Revenues
Administrative Expenses
Which of the following items are NOT reported as components of operating income for most manufacturing and merchandising companies?
Interest Expense
Selling Expenses
Revenues
Administrative Expenses
