Which of the following will be categorized as an investing activity on the statement of cash flows? A) Purchase of land with a mortgage B) Cash paid for purchase of new machinery C) Cash paid for purchase of office supplies D) Cash received from issuance of shares of common stock ANSWER B
Date: September 2nd, 2020
The balance sheet of a business summarizes an entity’s revenues and expenses. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
Which of the following is shown on the balance sheet as well as the statement of cash flows? A) Stockholders’ equity (ending balance) B) Net income C) Total assets (ending balance) D) Cash (ending balance) ANSWER D
Date: September 2nd, 2020
The heading of a balance sheet will show the date as a specific date, not a period of time. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
The income statement shows whether or not a business can generate enough cash to pay its liabilities. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
The balance sheet is a snapshot of the entity. Which of the following is included on the balance sheet? A) Revenues B) Expenses C) Assets D) Dividends ANSWER C
Date: September 2nd, 2020
The balance sheet shows whether or not a business is earning profits. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
Which financial statement includes a specific date in its heading? A) Statement of retained earnings B) Statement of cash flows C) Income statement D) Balance sheet ANSWER D
Date: September 2nd, 2020
Which of the following financial statements reports that total assets are equal to total liabilities plus total stockholders’ equity? A) Statement of retained earnings B) Statement of cash flows C) Income statement D) Balance sheet ANSWER D
Date: September 2nd, 2020
Which of the following appears on both the statement of retained earnings and the balance sheet? A) Ending retained earnings B) Total assets C) Total revenues D) Net income ANSWER A
Date: September 2nd, 2020
