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Financial Reporting Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Why do business owners depend on the income statement?

Question 2 2. The balance sheet is a part of which of the following?

Question 3 3. What's the difference between negative cash flow and positive cash flow?

Question 4 4. What is the section of the statement of cash flows that includes activities that occur during the normal day-to-day operations of a company?

Question 5 5. On which financial statement is cash flow reported?

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Question 6 6. Which of the following is the equation used for the basic income statement?

Question 7 7. What is the difference between a Statement of Cash Flows and Income Statement?

Question 8 8. Why might potential investors and creditors look at a company's financial statements?

Question 9 9. What is the balance sheet equation?

Question 10 10. Which of the sections of the statement of cash flows includes activities that involve cash receipts or cash payments from changes on long-term liabilities?

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Question 11 11. What financial report can help you figure out how well a company is managing its money?

Question 12 12. If an investor wanted to see how much money was maintained and reinvested in the company, which financial statement would give that information?

Question 13 13. Assets, liabilities and owner's equity are reported on which financial statement report?

Question 14 14. Using the image of the balance sheet, what is this company's current ratio?

Question 15 15. How can money be brought into a company?

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Question 16 16. Calculate this company's quick ratio using the balance sheet image.

Question 17 17. Which of the following are things that you own?

Question 18 18. What are financial statements?

Question 19 19. You work as an accountant for a small business. The owner of the company has asked you to give her the operating cash flow for the company for the fiscal quarter that just ended. Upon review of of the relevant documents, you determine that the company's earnings before taxes and interest for the quarter was $230,000, it depreciated $5,000 worth of equipment and has paid estimated taxes of $20,000. There was no amortization. What is the operating cash flow for the last quarter?

Question 20 20. What are the standards that all financial reports are created by?

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Question 21 21. There are five basic _____ which are calculated using information found in the balance sheet and income statement that are measures of the productivity and efficiency of a business.

Question 22 22. Which of the following gives more detail on a section of the balance sheet?

Question 23 23. What financial report tells you if the company suffered a loss or earned a profit?

Question 24 24. Using the image of the balance sheet, what is this company's debt-to-assets ratio?

Question 25 25. What is the statement of cash flows?

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Question 26 26. The _____ of a company denotes the amount of money that was paid out.

Question 27 27. Which of the following is a reason why the statement of cash flows is important to users of financial statements?

Question 28 28. Explain the purpose of an income statement.

Question 29 29. The statement of cash flows is broken down into how many activities?

Question 30 30. As the CFO of Acme Machinery, Kay is concerned that their cash flow is being impacted by the amount of money they are spending on expensive pieces of equipment. Should Kay look at their free cash flow or net cash flow, and why?

Financial Reporting Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next question. You can skip questions if you would like and come back to them later with the "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. You will lose your work if you close or refresh this page. Good luck!

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