Accounting Review Ch 9

The balance sheet reports financial information ____.

• on a specific date

• at the end of a period

• from the income statement

• from ratios

The information needed to prepare the income statement comes from the____.

• statement of changes in owner's equity

• general journal

• Balance Sheet section of the work sheet

• Income Statement section of the work sheet

____ summarize the changes resulting from business transactions that have occurred during an accounting period.

• balance sheet

• profitability ratios

• financial statements

• net income

____ is reported on the income statement

• Net income or net loss

• A profitability ratio

• A financial statement

• Net Worth

A(n) ____ is the financial statement that reports the final balances in all asset, liability, and owner's equity accounts at the end of the accounting period.

• general ledger

• statement of changes in owner's equity

• income statement

• balance sheet

In the ____, the classifications of balance sheet accounts are shown one under the other.

• general journal

• work sheet

• report form

• income statement

One source of information for completing the balance sheet is the ____.

• Income Statement section of the work sheet

• Balance Sheet section of the work sheet

• financial statement

• ledger

The ____ is completed as a support document for the balance sheet.

• income statement

• current ratio

• current assets

• statement of changes in owner's equity

____ are debts of the business that must be paid within the next accounting period.

• current assets

• current liabilities

• liquid assets

• long-term liabilities

____ indicates what percentage of net sales represents profit

• profitability ratio

• return on sales

• current ratio

• quick ratio