Question 1

A statement of stockholders' equity summarizes the changes in owners' equity during a fiscal period.

Accepted Answer

A) True 
 B)False

Question 2

When more detailed information about an item on a financial statement is needed, a supporting schedule may be prepared.

Accepted Answer

A) True 
 B)False

Question 3

Preparing financial statements that provide information about a business's financial condition, changes in this financial condition, and the progress of operations is an application of the accounting concept

Accepted Answer

A)  Consistent Reporting. 
B)  Adequate Disclosure. 
C)  Historical Cost. 
D)  Matching Expenses with Revenue.

Question 4

The total original price of all merchandise sold during a fiscal period is called

Accepted Answer

A)  the cost of merchandise sold. 
B)  the cost of goods sold. 
C)  the cost of sales. 
D)  all of these.

Question 5

A financial statement that reports the amount of dividends is

Accepted Answer

A)  an income statement. 
B)  a balance sheet. 
C)  a statement of stockholders' equity. 
D)  none of these.

Question 6

Total operating expenses on an income statement are deducted from gross profit to find income from operations.

Accepted Answer

A) True 
 B)False

Question 7

Data needed to prepare the Liabilities section of a balance sheet are obtained from the Debit column of an adjusted trial balance.

Accepted Answer

A) True 
 B)False

Question 8

Reporting financial information the same way from one fiscal period to the next is an application of the accounting concept Adequate Disclosure.

Accepted Answer

A) True 
 B)False

Exam 16: Financial Statements and Closing Entries

A statement of stockholders' equity summarizes the changes in owners' equity during a fiscal period.

When more detailed information about an item on a financial statement is needed, a supporting schedule may be prepared.

Preparing financial statements that provide information about a business's financial condition, changes in this financial condition, and the progress of operations is an application of the accounting concept

The total original price of all merchandise sold during a fiscal period is called

A financial statement that reports the amount of dividends is

Total operating expenses on an income statement are deducted from gross profit to find income from operations.

Data needed to prepare the Liabilities section of a balance sheet are obtained from the Debit column of an adjusted trial balance.

Reporting financial information the same way from one fiscal period to the next is an application of the accounting concept Adequate Disclosure.