financial statements

If revenues equal $100,000 and expenses equal $120,000, then net income (loss) must equal ______.

$(20,000)

ABC, Inc.'s income statement shows Service revenue of $40,000, Wages expense of $25,000 and Net income of $1,000. The other expenses on ABC's income statement must equal ______.

$14,000

During the year, Pizza Company, Inc. had $100,000 in revenues, $40,000 in expenses, and paid $3,000 in dividends. Net income equals ______.

$60,000

To complete the measurement process, companies need to update balances of assets, liabilities, revenues and expenses for changes created by ____entries.

Blank 1: adjusting, adjusted, adjust, or adjustment

A classified balance sheet shows subtotals for current ___ and current ___. (Enter one word per blank)

Blank 1: assets or asset Blank 2: liabilities or liability

Assets, liabilities and stockholders' equity are reported on the _____, ___while revenue and expense are reported on the . ______ ______

Blank 1: balance Blank 2: sheet Blank 3: income Blank 4: statement

Which of the following accounts will never be affected by an adjusting entry? Multiple choice question.

Cash

Which of the following expressions correctly calculates "total assets?"

Current assets plus long-term assets

True or false: Total assets must always be equal to total liabilities less stockholders' equity

False

If a company incorrectly records a payment as an asset instead of an expense, how will this error affect net income in the current period?

Net income will be too high.

____ is the price earned from selling goods or services to customers. (Enter one word per blank)

Revenue, Sales, or Revenues

Select all that apply Which of the following line items appear in an income statement?

Sales Revenue Salaries Expense

Select all that apply Which of the following statements regarding the statement of cash flows are correct?

The final financial statement that is typically prepared Reports cash disbursements Reports cash receipts

Revenue in the income statement for the year ended December 31, 2018 equals the ______.

amount earned by selling goods or services to customers during 2018

Select all that apply The adjusted trial balance provides account balances reported in which financial statements?

balance sheet income statement statement of stockholders' equity

The adjusted trial balance should be prepared ______ the financial statements are prepared in order to prove the ______ of the debits and credits.

before; equality

Adjusting entries never affect the asset account called ____ . (Enter only one word.)

cash

Select all that apply Which of the following accounts should be classified as stockholders' equity?

common stock retained earnings

On a classified balance sheet, total liabilities represent the sum of and long-term liabilities. (Enter only one word.)

current, short-term, short term, or short

Select all that apply The statement of stockholders' equity includes these amounts: (Select all that apply.)

ending balance retained earnings dividends for the period net income

Select all that apply The primary components of net income are:

expenses revenues

Select all that apply The information reported in the statement of cash flows is organized by these activities:

investing operating financing

Stockholders' equity consists of two main components, common stock and ______.

retained earnings

Select all that apply The two major categories reported in the income statement are:

revenue expense