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Basic Financial Statements 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. Which of the following are things that you own?

Question 2 2. Which of the following is the equation used for the basic income statement?

Question 3 3. How can money be brought into a company?

Question 4 4. What is the statement of cash flows?

Question 5 5. Assets, liabilities and owner's equity are reported on which financial statement report?

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Question 6 6. 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?

Question 7 7. What does the balance sheet tell you about a business?

Question 8 8. What are the standards that all financial reports are created by?

Question 9 9. The statement of cash flows is broken down into how many activities?

Question 10 10. Why do business owners depend on the income statement?

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Question 11 11. You are a professional food photographer. The camera you use for your work cost you $10,000. It has a life expectancy of 20 years. What is your annual depreciation?

Question 12 12. A single-serve coffee machine worth $30,000 can make 60,000 cups of coffee in its life. Using the units of production depreciation method, what is the depreciation for the year where 5,000 cups of coffee were made?

Question 13 13. Which report gives you the depreciation for just one month?

Question 14 14. The camera you use for work cost you $10,000 to purchase. With a life expectancy of 20 years, what is the depreciation amount on the balance sheet after 4 years?

Question 15 15. Which of the following is a reason why the statement of cash flows is important to users of financial statements?

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Question 16 16. A camera with a value of $20,000 has a life expectancy of 20 years. What is the percentage each year that you can take using the straight-line depreciation method?

Question 17 17. On an income statement, _____ is/are the money that a company pays out.

Question 18 18. A hybrid car used for work was bought for $30,000 with a life expectancy of 10 years. What is the depreciation amount you put in your monthly income statement?

Question 19 19. 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 20 20. A photocopier has a value of $2,000 and a life of 5 years. What is the percentage depreciation each year using the double declining balance method?

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Question 21 21. Explain the purpose of an income statement.

Question 22 22. A printer worth $30,000 with a life expectancy of 5 years has a yearly depreciation of what using the straight-line depreciation method?

Question 23 23. A car cost $40,000 to purchase. It has a life of 10 years. Using the double declining balance depreciation method, what is the value of the car after the second year?

Question 24 24. The balance sheet is a part of which of the following?

Question 25 25. What is the balance sheet equation?

Basic Financial Statements Chapter 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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