Question 1

If a business has a net loss for the period, expenses should be reported before revenues on the income statement.

Accepted Answer

A) True 
 B)False

Question 2

The amount of net income calculated on an income statement is correct if

Accepted Answer

A)  it is the same as the net income shown on the work sheet. 
B)  debits equal credits. 
C)  it is the same as the net income shown on the balance sheet. 
D)  none of these. 
A)  it is the same as the net income shown on the work sheet. 
B)  debits equal credits. 
C)  it is the same as the net income shown on the balance sheet. 
D)  none of these.

Question 3

An amount written in parentheses on a financial statement indicates an estimate.

Accepted Answer

A) True 
 B)False

Question 4

Vertical analysis is reporting an amount on a financial statement as a percentage of another item on the same financial statement.

Accepted Answer

A) True 
 B)False

Question 5

When a business has two different sources of revenue, a separate income statement should be prepared for each kind of revenue.

Accepted Answer

A) True 
 B)False

Question 6

The current owner's capital amount reported on a statement of owner's equity is calculated as capital account balance less drawing account balance less net income.

Accepted Answer

A) True 
 B)False

Question 7

The calculation and interpretation of a financial ratio is called ratio analysis.

Accepted Answer

A) True 
 B)False

If a business has a net loss for the period, expenses should be reported before revenues on the income statement.

The amount of net income calculated on an income statement is correct if

An amount written in parentheses on a financial statement indicates an estimate.

Vertical analysis is reporting an amount on a financial statement as a percentage of another item on the same financial statement.

When a business has two different sources of revenue, a separate income statement should be prepared for each kind of revenue.

The current owner's capital amount reported on a statement of owner's equity is calculated as capital account balance less drawing account balance less net income.

The calculation and interpretation of a financial ratio is called ratio analysis.

The Accounting Equation

Debit and Credit Parts

Journalizing Transactions

Posting to a General Ledger

Cash Control Systems

Work Sheet and Adjusting Entries

Closing Entries and Post-Closing

Accounting for Purchases and Cash Payments

Accounting for Sales and Cash Receipts

Using a General Journal

Preparing Payroll Records

Accounting for Payroll and Payroll Taxes

Uncollectible Accounts Receivable

Adjusting Entries and a Trial Balance

Financial Statements and Closing Entries

Financial Statement Analysis

Acquiring Capital for Growth and Development

Plant Assets and Intangible Assets

Accounting for Inventory

Accruals, Deferrals, and Reversing Entries

End-Of-Fiscal-Period Work for a Corporation

Accounting for Partnerships

Recording International and Internet Sales

Service Business Organized As a Proprietorship

Merchandising Business As a Corporation

Additional Accounting Procedures

Filters

Exam 7: Financial Statements for a Proprietorship

If a business has a net loss for the period, expenses should be reported before revenues on the income statement.

The amount of net income calculated on an income statement is correct if

An amount written in parentheses on a financial statement indicates an estimate.

Vertical analysis is reporting an amount on a financial statement as a percentage of another item on the same financial statement.

When a business has two different sources of revenue, a separate income statement should be prepared for each kind of revenue.

The current owner's capital amount reported on a statement of owner's equity is calculated as capital account balance less drawing account balance less net income.

The calculation and interpretation of a financial ratio is called ratio analysis.

The Accounting Equation

Debit and Credit Parts

Journalizing Transactions

Posting to a General Ledger

Cash Control Systems

Work Sheet and Adjusting Entries

Closing Entries and Post-Closing

Accounting for Purchases and Cash Payments

Accounting for Sales and Cash Receipts

Using a General Journal

Preparing Payroll Records

Accounting for Payroll and Payroll Taxes

Uncollectible Accounts Receivable

Adjusting Entries and a Trial Balance

Financial Statements and Closing Entries

Financial Statement Analysis

Acquiring Capital for Growth and Development

Plant Assets and Intangible Assets

Accounting for Inventory

Accruals, Deferrals, and Reversing Entries

End-Of-Fiscal-Period Work for a Corporation

Accounting for Partnerships

Recording International and Internet Sales

Service Business Organized As a Proprietorship

Merchandising Business As a Corporation

Additional Accounting Procedures

Filters