Question 1

Which of the following account categories is found on the Income Statement rather than the Balance Sheet?

Accepted Answer

Advertising Expense

Answer

Accounts Receivable

Answer

Cash

Answer

Equipment

Question 2

If a company has total assets of

50,000

and total liabilities of

20,000

, what is the total amount of Shareholders' Equity reported on the Balance Sheet?

Accepted Answer

Answer

Answer

Answer

Question 3

Which financial statement communicates the financial 'performance' of a company by calculating Net Income as

50,000

?

Accepted Answer

Income Statement

Answer

Balance Sheet

Answer

Statement of Retained Earnings

Answer

Statement of Cash Flows

Question 4

Which of these financial items is considered a Liability on the Balance Sheet?

Accepted Answer

Accounts Payable

Answer

Service Revenue

Answer

Prepaid Insurance

Answer

Inventory

Question 5

If a company reports

50,000

,

20,000

, and

Operating Expenses = 15,000

, what is the Net Income reported on the Income Statement?

Accepted Answer

Answer

Answer

Answer

Question 6

Which of the following describes the correct measurement 'point in time' for the Income Statement and the Balance Sheet?

Accepted Answer

The Income Statement covers a period of time, while the Balance Sheet reports a specific point in time.

Answer

Both the Income Statement and the Balance Sheet report a specific point in time.

Answer

The Balance Sheet covers a period of time, while the Income Statement reports a specific point in time.

Answer

Both the Income Statement and the Balance Sheet cover a period of time.

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