Which financial statement shows the movements of cash and cash equivalents in and out during an accounting period ?
- Balance Sheet
- Income statement
- Cash flow statement
- Statement of changes in equity
The income statement summarizes the assets, liabilities, and owner's equity of a business at a moment in time.
- True
- False
On a balance sheet, the most liquid assets are listed first.
- False
- True
Goodwill is classified as which of the following type of asset ?
- Fixed
- Current
- Intangible
- Long Term
The balance sheet is a measure of the market value of a company.
- True
- False
Assets minus Liabilities equals Net Income/Loss.
- False
- True
Revenues are found in the balance sheet.
- False
- True
Owner's Equity is also referred to as Net Assets.
- False
- True
Capital Stock is a current asset.
- False
- True
Prepaid expenses are classified as non-current assets.
- True
- False
Two forms of the Income Statement are the Single-Step and the Multi-Step.
- False
- True
The notes to the financial statements are not required by Generally Accepted Accounting Princples (GAAP).
- True
- False
Which of the following would appear on the statement of Retained Earnings.
- Beginning Retained Earnings
- All of the answers are correct
- Net Income/Loss
- Ending retained earnings
- Dividends
Which of the following would NOT appear on the income statement ?
- dividends
- net income/loss
- revenues
- expenses
Assets are classified as current if they can be turned into cash or used up in a year or operating cycle, whichever is longer.
- True
- False
In the Report Form of the Balance Sheet the major categories are stacked on top of each other.
- True
- False
The shareholder's equity amount on a balance sheet represents creditors claims.
- False
- True
A Trial Balance is a tool that is used as an aid in preparing the financial statements.
- False
- True
Cost Of Goods Sold would be classified as what type of Account ?
- expense
- asset
- revenue
- liability
Notes to the financial statements are an integral part of the statements and are required by Generally Accepted Accounting Principles (GAAP).
- True
- False
Recording revenues when cash is received is one of the Generall Accepted Accounting Principles (GAAP).
- True
- False
The primary purpose of the Income Statement is ?
- Measure the company's profitability over a period of time
- Compare the company's assets against the company's liabilities
- Determine taxes owed
- Determine if the company will have enough cash to operate properly
- Show the company's value as of a given point in time
The current ratio is a measure of a company's liquidity.
- True
- False