1 point Stockholders' Equity is calculated and presented on the Balance Sheet as Current Assets minus Current Liabilities Capital Stock (or Common Stock) plus Retained Earnings Gross Revenue minus Expenses 1 point The financial statements of publicly traded entities are required to be audited in order to ensure perfect accuracy in all accounts guard against fraud and material misstatements comply with IFRS 1 point In the financial statements, the accounting equation is BEST represented by the ? balance sheet statement of owner's equity income statement 1 point Which of the following would not be presented as an asset on the balance sheet? Goodwill paid in purchasing another company The value of customer lists Intellectual property, such as cost to develop patents The statement that reconciles beginning and ending equity is known as the the statement of stockholders' equity income statement statement of cash flows 1 point For each account listed, determine whether the account belongs on the Balance Sheet or the Income Statement. Possible answers 1 point In accounting, future sacrifices or claims arising out of past or current transactions or actions are called assets liabilities equity On the Income Statement, are deducted from Revenues to arrive at net Income. Expenses Current Liabilities Cost of Goods Sold 1 point Property, plant and equipment, are presented after on the balance sheet. non-current assets fixed assets current assets 1 point Which of the following calculations would you use to compute gross profit? Net sales less cost of goods sold Net sales less operating expenses Operating income less other income and expenses 1 point Net income increases stockholders' equity total liabilities gross profit Intellectual property, goodwill, and long-term investments are examples of fixed assets non-current assets current assets 1 point In accounting, ownership interests in the company are called equity liabilities assets 1 point Ending Stockholders' Equity (for example, Common Stock and Retained Earnings) flows from the balance sheet to the statement of stockholders' equity income statement to the balance sheet statement of stockholders' equity to the balance sheet 1 point The statement that shows revenues less expenses is the income statement statement of cash flows statement of stockholders' equity The gross revenues that make up the income of a business are reported on the Balance Sheet Income Statement Statement of Owners' Equity 1 point In the accounting equation, liabilities are equal to the amount of assets owned outright by the owners resources owned by the company debts owed to others 1 point A=L+E (or A=L+SE ) is a mathematical representation of which one of the following accounting concepts? The accounting equation The going concern assumption Double entry bookkeeping 1 point On the Balance Sheet, Assets minus Liabilities is represented by which of the following? Current Assets Net Income Stockholders' Equity On the balance sheet, assets are generally presented in numerical order, largest to smallest in the order of liquidity in alphabetical order 1 point Current assets show up after fixed assets but before non-current assets on the balance sheet in the first section of the balance sheet after fixed and non-current assets on the balance sheet 1 point The income statement is the statement to be created from the adjusted trial balance. First last Second 1 point In accounting, resources with economic value that are expected to provide future benefits are called equity liabilities assets Current assets include cash and cash equivalents, accounts receivable, and inventory Cash and cash equivalents, fixed assets, and intellectual property Property, plant, and equipment 1 point Upon which of the following statements would you find total assets? Income statement Statement of stockholders' equity Balance sheet 1 point The statement based on the relationship between assets, liabilities and equity is the statement of stockholders' equity balance sheet income statement