1. The three heading lines of financial statements typically include which of the following?

a. name of auditor, statement title, fiscal year end

b. statement title, time period of report, name of preparer

c. company headquarters, statement title, name of preparer

d. company, statement title, time period of report

2. Working capital is an indication of the firms ________.

a. amount of noncurrent liabilities

b. amount of noncurrent assets

c. asset utilization

d. liquidity

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

a. income statement, statement of owners equity, balance sheet, statement of cash flows

b. income statement, statement of cash flows, balance sheet, statement of owners equity

c. income statement, balance sheet, statement of cash flows, statement of owners equity

d. income statement, balance sheet, statement of owners equity, statement of cash flows

4. The accounting equation is expressed as ________.

a. Assets Noncurrent Assets = Liabilities

b. Assets = Liabilities + Investments by Owners

c. Assets + Liabilities = Owners Equity

d. Assets = Liabilities + Owners Equity