1. Which financial statement reports a companys assets and liabilities? a. Income statement. b. Statement of cash flows. c. Balance sheet. d. Statement of stockholders equity.

2. Which financial statement shows a companys revenues and expenses? a. Income statement. b. Statement of stockholders equity. c. Balance sheet. d. Statement of cash flows.

3. If equity is $300,000 and liabilities are $192,000, then assets equal: A. $108,000. B. $192,000. C. $300,000. D. $492,000.

4. The assets section of the balance sheet should include a. Depreciation expense. b. common stock. c. accounts payable. d. inventory.