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10 Cards in this Set
- Front
- Back
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Which of the following is an asset?
a. Mortgage Payable b. Investments c. Common stock d. Retained earnings |
b. Investments
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Which of the following would not appear on the retained earnings statement?
a. Net income b. Beginning retained earnings balance c. Service revenue d. Dividends |
c. Service revenue
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Which of the following is not a liability?
a. Mortgage Payable b. Accounts Payable c. Accounts Receivable d. Interest Payable |
c. Accounts Receivable
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Which of the following financial statements is divided into major categories of operating, investing, and financing activities?
a. The income statement. b. The balance sheet. c. The retained earnings statement. d. The statement of cash flows |
d. The statement of cash flows.
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5. The accounting equation may be expressed as:
a. Assets = Stockholders’ Equity – Liabilities. b. Assets = Liabilities + Stockholders’ Equity. c. Assets + Liabilities = Stockholders’ Equity. d. Assets + Stockholders’ Equity = Liabilities. |
b. Assets = Liabilities + Stockholders’ Equity.
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6. A measure of profitability is the
a. current ratio. b. debt to total assets ratio. c. earnings per share. d. working capital. |
c. earnings per share.
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7. Reporting a net loss of $20,000 will
a. increase retained earnings. b. decrease retained earnings. c. increase common stock. d. decrease common stock |
b. decrease retained earnings.
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8. Equipment is classified on the balance sheet as
a. a current asset. b. property, plant, and equipment. c. an intangible asset. d. a long-term investment. |
b. property, plant, and equipment.
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9. Trademarks would appear in which balance sheet section?
a. Intangible assets b. Investments c. Property, plant, and equipment d. Current assets |
a. Intangible assets
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10. Reporting a net income of $95,000 will
a. increase retained earnings. b. decrease retained earnings. c. increase common stock. d. decrease common stock. |
a. increase retained earnings.
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