Financial Statements

Which of the following types of information is not found in financial statements?

• Profits

• Revenues

• Selling price

• Assets

Consider the steps in the accounting cycle. Which part of the accounting cycle provides information to help a business decide whether to expand its operations?

• Post-Closing Trial Balance

• Adjusting Entries

• Closing Entries

• Financial Statements

Which situation indicates a loss on the income statement?

• Total debits equals total credits.

• Total credits exceed total debits.

• Total debits exceed total credits.

• None of the choices

The statement of changes in equity would not show...

• revenues and expenses

• the owner's ending capital balance

• the owner's initial capital balance

• the owner's withdrawal for the period

Which of the following is an example of investing activities?

• obtaining a bank loan

• paying taxes to the government

• producing goods and services

• purchasing a building

Which of the following is an example of a financing activity?

• acquiring land

• employing workers

• paying off a loan

• selling equipment

The statement of cash flow would disclose the withdrawal of cash by the owner...

• in the financing activities section

• in the investing activities section

• in the notes to the financial statements

• in the operating activities section

Which of the following is an example of an operating activities?

• obtaining capital from owners

• purchasing equipment

• selling goods and services to customers

• selling land

Which of the following is a cash flow from a operating activities?

• paying for interest expense

• payment to acquire property and equipment

• payment to settle notes payable

• payment to owners in the form of withdrawals

Which of the following comes first in the accounting process?

• journalizing external transactions

• preparation of an adjusted trial balance

• preparation of an unadjusted trial balance

• worksheet preparation