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:
