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Financial Statements in Accounting: Help and 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. The term GAAP stands for_____.

Question 2 2. Why is it necessary to complete the basic income statement prior to completing the statement of retained earnings?

Question 3 3. Which of the following financial reports tells how much money that was made was reinvested in the company?

Question 4 4. The balance sheet is a part of which of the following?

Question 5 5. Which of the following are things that you own?

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Question 6 6. What is the balance sheet equation?

Question 7 7. What is the term for an examination of a company's financial records by someone that is not an employee of the company?

Question 8 8. Which of the following is the equation used for the basic income statement?

Question 9 9. What is the balance sheet equation?

Question 10 10. 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 11 11. Explain the purpose of an income statement.

Question 12 12. Identify the person that reviews the audit report of a company to see if the company is being compliant with the law?

Question 13 13. Which financial statement shows how much money that a company made was retained and reinvested in the company?

Question 14 14. What are events that occurred after the date on the balance sheet but before the financial statements have been issued called?

Question 15 15. What is the statement of cash flows?

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Question 16 16. 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 17 17. 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 18 18. What are the standards that all financial reports are created by?

Question 19 19. Which of the following are components of the Statement of Cash Flows?

Question 20 20. What accounting principle states that people involved in a transaction should not be personally related?

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Question 21 21. 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?

Question 22 22. What is a liability that has not yet occurred but the conditions are favorable that it will occur called?

Question 23 23. Which of the following financial reports tells whether a company made or lost money in a given time period?

Question 24 24. 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 25 25. On an income statement, _____ is/are the money that a company pays out.

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Question 26 26. When a criminal case is tried, the stenographer writes down every word of the proceeding. How does the principle of monetary measurement differ?

Question 27 27. Assets, liabilities and owner's equity are reported on which financial statement report?

Question 28 28. The statement of cash flows is broken down into how many activities?

Question 29 29. Which of the following is a reason why the statement of cash flows is important to users of financial statements?

Question 30 30. What is the difference between a Statement of Cash Flows and Income Statement?

Financial Statements in Accounting: Help and 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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