CH 2 Review

Which of the following would be the listed closest to the bottom of an income statement?

Net Loss

What does a double line within a financial statement indicate?

The amount being underlined is the final amount in a column or section.

Which of the following pieces of information about the income statement is not included in the three-line heading?

Where

Which of the following is not an asset account?

Accounts Payable

Which of the following can be described as "the debts of a business"?

Liabilities

Which of the following is the fundamental accounting equation?

Assets = Liabilities + Owner's Equity

Which financial statement illustrates that the fundamental accounting equation is in balance at the end of the reporting period?

Balance sheet

Which of the following, if present, would appear within both the income statement and the statement of owner's equity?

Additional investment made by the owner

Which of the following, if present, would appear within both the statement of owner's equity and the balance sheet?

Capital balance at the end of the period