1- What is the primary purpose of the statement of cash flow?

Select one:

A. To provide information about where a company's cash comes from and where it goes

B. To provide information about the cash flow from operations for a period

C. To provide pro forma information that helps users predict future cash flows

D. To provide information about firm profitability

2- If assets equal $206,000 and shareholders' equity equals $104,000, liabilities are:

Select one:

A. $ (82,000)

B. $290,000

C. $ 82,000

D. $102,000

3- If the liabilities of the Barrel Corporation equal $200,000, the retained earnings are $150,000, and capital stock equals $92,500, the companys assets are:

Select one:

A. $207,500

B. $442,500

C. $392,500

D. $ 7,500

4- Net assets equal:

Select one:

A. Assets plus liabilities

B. Assets minus shareholders' equity

C. Assets plus shareholders' equity

D. Assets minus liabilities

5- The accounting equation requires that:

Select one:

A. Total assets equal total liabilities plus shareholders' equity

B. Total assets equal total noncurrent liabilities plus shareholders' equity

C. Current assets equal current liabilities plus shareholders' equity

D. Shareholders' equity equal total liabilities plus total assets