1 What financial statement is not for a period of time?

• Balance Sheet
• Statement of cash flow
• Statement of retained earnings

2 The Sarbanes-Oxley Act cover all of the below except:

• Tax regulation
• Audit Standards
• Financial disclosure

3 A sole proprietor recorded the payment of an account payable to an office supplies store. Recording the transaction will:

• Increase an asset, increase owner's equity
• Decrease an asset, decrease owner's equity
• Decrease an asset, decrease a liability

4 Which of the following is a formal written promise to pay a definite sum of money on demand or a fixed determinable future date?

• prepaid insurance policy
• noted payable
• Accounts payable

5 The table below shows 12-month income statement for nan's pizzeria. How many pizzas must nan sell in order to break even?

Sales ($10x100,000 pizzas) $1,000,000

Variable cost per pizza ($6) $($600,000)

Gross profit $400,000

Operating expenses

Salaries ($50,000)

Rent ($50,000)

Total operating expenses ($100,000)

Net income (Profit) $300,000

• 30,000
• 25,000
• 50,000