Financial statements

Goodwill is classified as which one of the following assets?

...

What two items are subtracted from gross sales to arrive at net sales

...

On a balance sheet the most liquid assets

True

The statement of cash flows ties into the cash balances in the balance sheet

True

Cash, accounts receivable, inventory, and PPE

Which of the following is the correct order of how assets should be presented on a balance sheet

What account is usually the largest current asset

Inventory

Where did the assets appear on a two column balance sheet

On the left

The resulting amount when total liabilities or subtracted from Total assets is known as

Owner's equity

The resulting amount when total liabilities is subtracted from Total assets is known as

Owner's equity or net assets

Which of the following is not one of the GAAP principles

Revenue should be recorded when cash is received

What two items are subtracted from gross sales to arrive at net sales

Sales returns/allowances and sales discounts

Period of time

The income statement applies to a single point in time of the businesses calendar (false)

Which of the following accounts is not a liability

Accounts receivable

Which of the following is not a step in constructing a multi-step income statement

Add all revenues, then subtract all expenses

Cost of goods sold would be classified as what type of account

Expense

The shareholders Equity figure on a balance sheet represents

False

The income statement applies to a single point in time of the business's calendar year

False (period of time)

Is during the accounting period the assets increased by 5000, and the owner's equity increased by $1,000, then the liabilities must have increased by $6,000

Increased by $4,000

Which of the following does not describe the purpose of cash flow statement

It demonstrates whether a company is profitable

Which of the following does not describe the purpose of a cash flow statement

It demonstrates whether company is profitable

The primary function of the income statement is to

Measure the company's financial performance over period of time

What two accounts offset the purchase account

Purchase returns allowances and purchase discounts

All of these accounts appear on the balance-sheet except

Revenue

Which of these is an example of a

(All of these are correct) Bad debt write-off Depreciation Amortization

Which of the following is not a current asset

Copyrights

Liabilities

Debts owed by the business to others are classified as: