Financial Statements in Accounting 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 is the balance sheet equation?

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. What are financial statements?

Question 5 5. 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 6 6. The term GAAP stands for_____.

Question 7 7. Which of the following is a reason why the statement of cash flows is important to users of financial statements?

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

Question 10 10. Identify the person that performs the financial statement audit?

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Question 11 11. What is the difference between a Statement of Cash Flows and Income Statement?

Question 12 12. 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 13 13. When a criminal case is tried, the stenographer writes down every word of the proceeding. How does the principle of monetary management differ?

Question 14 14. 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 15 15. Why do business owners depend on the income statement?

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

Question 17 17. The balance sheet is a part of which of the following?

Question 18 18. Explain the purpose of an income statement.

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

Question 20 20. What are events that occurred after the date on the balance sheet but before the financial statements have been issued called?

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Question 21 21. A financial statement which shows how cash flows in and out of a company during a given time period is known as a(n)

Question 22 22. 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 23 23. Which financial statement tells whether a company made or lost money in a given time period?

Question 24 24. What are the rules and regulations that must be followed when reporting all financial data?

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

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Question 26 26. Which financial statement shows how much money that a company made was retained and reinvested in the company?

Question 27 27. Why is it necessary to complete the basic income statement prior to completing the statement of retained earnings?

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

Question 30 30. What is a liability that has not yet occurred but the conditions are favorable that it will occur called?

Financial Statements in Accounting 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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