1. Required financial statements are: a. Balance Sheet, Profit and Loss Statement, Equity Holders Statement, Cash Flows Statement and GAAP principles b. Balance Sheet, Profit and Loss Statement and Cash Flows Statement c. Balance Sheet, Income Statement. T accounts and Cash Flows Statement d. Balance Sheet, Income Statement, Equity Holders Statement and Cash Flows Statement 2. Looking at the balance sheet of company, could we know the market value of the assets? a. No. all assets are registered at acquired cost according to the historical cost principal b. Yes, all the assets are registered at acquired cost and depreciated or revaluated each year according to the market value c. No. according to the matching principal the market value is depreciated every year d. Yes. Net book value of the assetsdepreciation is the Market Value 3. Retained earning come from a. Net income after paying dividends plus retained earnings at the beginning of the period b. Net income c. Net income after paying dividends d. Depending on the stock price 4. Most typical non cash items are: a. Depreciation and amortization and Gain and Losses that proceeds from divestments b. Allowance for doubtful accounts (Bad debt expense) c. Impairment Losses d. Al are right 5. Adjusting entries are: a. Journal entries to square the balance sheet b. Internal transactions that update account balances in accordance with accrual accounting prior to the preparation of financial statements c. Internal transactions that update account balances in accordance d. with accrual accounting e. Internal transactions that update account balances in accordance with accrual accounting after preparing of financial statements