Financial Statements in Accounting: Homework Help 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!

Page 1

Question 1 1. What are financial statements?

Question 2 2. Assets, liabilities and owner's equity are reported on which financial statement report?

Question 3 3. What do the notes to the financial statements do?

Question 4 4. Which one of the following is not a long-term liability?

Question 5 5. What financial report tells you what the company owns and what it owes?

Page 2

Question 6 6. Why do business owners depend on the income statement?

Question 7 7. 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 8 8. What does a quick ratio over 1.0 signify?

Question 9 9. If you want to know how well the company is managing its finances from a cash point of view, what financial data do you need to review?

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

Page 3

Question 11 11. Which financial statement tells whether a company made or lost money in a given time period?

Question 12 12. 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 13 13. You are a small manufacturer who spent $125,000 to produce your product last month. You already had $33,000 in finished goods in inventory and you ended the month with $40,000 worth of finished goods. What was your cost of goods sold last month?

Question 14 14. Your company has total assets of $15,750,000, short-term liabilities of $1,600,000 and long-term liabilities of $12,225,000. Calculate shareholder equity.

Question 15 15. True or false: Quantity discounts will lead to less profit-per-piece relative to the non-discounted price.

Page 4

Question 16 16. Evan owns his own business running a coffee shop in a downtown area. Which principle must he remember that no matter what he does as a business owner, he must keep his personal dealings completely separate transactions?

Question 17 17. What is the difference between a long-term and short-term liability?

Question 18 18. Which financial statement shows how much money that a company made was retained and reinvested in the company?

Question 19 19. What accounting principle requires having the ability to rely on documented information to record financial data?

Question 20 20. Identify the person that performs the financial statement audit?

Page 5

Question 21 21. What accounting principle states that people involved in a transaction should not be personally related?

Question 22 22. What is shareholder equity?

Question 23 23. If you want to know if the owners have any value in the business, what financial data do you need to review?

Question 24 24. What is the statement of cash flows?

Question 25 25. What happens to quantity demanded if the price of an item increases?

Page 6

Question 26 26. Which of the financial statements reports all accounts that a company has and the account balances?

Question 27 27. 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 28 28. What is the term for an examination of a company's financial records by someone that is not an employee of the company?

Question 29 29. Which of the following financial reports tells whether a company made or lost money in a given time period?

Question 30 30. You operate a small clothing boutique in a quaint downtown market. Your beginning inventory last month was $25,000 and you made another $10,000 in inventory purchases during the month and ended up with $18,000 of inventory left. What was your cost of goods sold?

Financial Statements in Accounting: Homework Help 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!

Financial Accounting: Homework Help Resource  /  Business Courses
Support