1) On the income statement, sales revenue minus cost of goods sold equals?

A) Net Income

B) Total Operating Expense

C) Income Tax

D) Gross Profit

2) The statement of shareholders equity reports changes over for common stock, additional paid in capital (or contributed in excess of par) and

A) Retained earnings

B) Cash

C) Cash flows from operating activities

D) accounts payable

3) A firm reports $20 of income before tax expenses and $6 of income tax expense had an income tax rate of

A) 20%

B) 30 %

C) 40%

D) 50%

4) The section of the statement of cash flows that report the amount of cash paid for the purchase of equipment is cash flows from

A) operating activities

B) investing activities

C) financing activities

D) business activities

5) identify one of the following accounts as a current asset

A) account payable

B) land

C) inventory

D) equipment