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Financial Statements: Help & Review 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. What is the balance sheet equation?

Question 2 2. What are the standards that all financial reports are created by?

Question 3 3. 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 4 4. Assets, liabilities and owner's equity are reported on which financial statement report?

Question 5 5. A financial statement which shows how cash flows in and out of a company during a given time period is known as a(n)

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Question 6 6. Which financial statement tells whether a company made or lost money in a given time period?

Question 7 7. Bob is an accountant with ABC Gas. Over the last 6 months, Bob has made intentional errors in his financial reporting in order to earn more money for himself. Who evaluates and will punish Bob's indiscretion?

Question 8 8. The people that have invested money into a company, as well as those who are considering making an investment into the company, are called _____.

Question 9 9. The balance sheet is a part of which of the following?

Question 10 10. How can money be brought into a company?

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Question 11 11. Why is a Balance Sheet an important financial statement?

Question 12 12. What is a liability that has not yet occurred but the conditions are favorable that it will occur called?

Question 13 13. Which of the following is a reason why the statement of cash flows is important to users of financial statements?

Question 14 14. The statement of cash flows is broken down into how many activities?

Question 15 15. Why do business owners depend on the income statement?

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Question 16 16. What do the notes to the financial statements do?

Question 17 17. Why is it necessary to complete the basic income statement prior to completing the statement of retained earnings?

Question 18 18. Identify the person that reviews the audit report of a company to see if the company is being compliant with the law?

Question 19 19. Explain the purpose of an income statement.

Question 20 20. The term GAAP stands for_____.

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Question 21 21. Which of the following financial reports tells how much money that was made was reinvested in the company?

Question 22 22. What are events that occurred after the date on the balance sheet but before the financial statements have been issued called?

Question 23 23. On an income statement, _____ is/are the money that a company pays out.

Question 24 24. What is the balance sheet equation?

Question 25 25. A company sold $100,000 in product that cost $25,000 to make and distribute, including all overhead and admin. It started with retained earnings of $10,000 and declared no dividends. What is the ending retained earnings?

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Question 26 26. Identify the person that performs the financial statement audit?

Question 27 27. A company had total revenue of $20,000 for the month ending March 31. In the same time period, the company had $12,000 in expenses. What was the company's net income or net loss?

Question 28 28. Which of the following are things that you own?

Question 29 29. The Widget Company is changing the way it does its accounting. They used to report revenue only when the money was received, but now they will report it once an order is made. How will this show in the notes?

Question 30 30. What are the guidelines that dictate how items are reported in the body of the financial statements and what is disclosed in the notes to the financial statements?

Financial Statements: Help & Review 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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