Financial Statements

Financial Statements

1. Most business report their financial condition with ____ number of forms?

2. An income statement reports?
revenue and expenses
assets and liabilities
assets liabilities and payroll taxes
stockholders' equity

3. To calculate cost of goods sold, take?
gross profit minus net profit
purchases minus sales
cost of merchandise available for sale minus ending inventory
beginning inventory plus purchases

4. Sales minus cost of good sold equals?
gross profit
net profit
ending inventory
beginning inventory

5. If sales are $95,000 and cost of goods are $35,000, what is the gross profit?

6. If beginning inventory is $50,000 and purchases are $25,000, the cost of good sold is?
can't be determined

7. If beginning retained earnings are $85,000 and the net income for the period was $10,000, what is the new value for retained earnings?
none of the above

8. A report that summarizes assets, liabilities and stockholders' is called?
income statement
trial balance
statement of retained earnings
balance sheet

9. If assets equal $100,000 and liabilities equal $60,000, what is the value of stockholders' equity?

10. If stockholders' equity is $50,000 and liabilities total $80,000, what is the value of the assets?
none of the above

11. Net sales is found by?
subtracting total expenses from gross profit
add gross profit and expenses
subtract sales returns from gross sales
add sales returns to gross sales

12. Depreciation on the income statement comes from?
the expensing out the value of an asset
the difference between income statement debit and credit columns
balance sheet total minus net income
gross profit minus total expenses

13. Total cost of merchandise available for sale is determined by?
adding beginning inventory to purchases
beginning inventory minus ending inventory
net sales minus sale returns
gross profit plus expenses

14. Merchandise inventory on the balance sheet comes from?
the ending inventory on the income statement
cost of good sold
decreases to accounts receivable ledger accounts
gross profit

15. Notes payable on the balance sheet come from?
business contract
business loan
payroll taxes
net profit

Chapter 12 Accounting Test

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