1 Identify the correct components of the income statement.

1. revenues, losses, expenses, and gains
2. assets, liabilities, and owners equity
3. revenues, expenses, investments by owners, distributions to owners
4. assets, liabilities, and dividends

2. The balance sheet lists which of the following?

1. assets, liabilities, and owners equity
2. revenues, expenses, gains, and losses
3. assets, liabilities, and investments by owners
4. revenues, expenses, gains, and distributions to owners

3. The accounting equation is expressed as ________.

1. Assets + Liabilities = Owners Equity
2. Assets Noncurrent Assets = Liabilities
3. Assets = Liabilities + Investments by Owners
4. Assets = Liabilities + Owners Equity

4. Which of the following is not an element of the financial statements?

1. future potential sales price of inventory
2. assets
3. liabilities
4. equity

5. Which of the following is the correct order of preparing the financial statements?

1. income statement, statement of cash flows, balance sheet, statement of owners equity
2. income statement, statement of owners equity, balance sheet, statement of cash flows
3. income statement, balance sheet, statement of owners equity, statement of cash flows
4. income statement, balance sheet, statement of cash flows, statement of owners equity