1. Which of the following best describes the account format of preparing a balance sheet?
   1. Liabilities and owner's equity accounts are listed first and then the assets are listed (vertically)
   2. Assets are listed first and then the liabilities and owner's equity accounts are listed (vertically)
   3. Assets of a company are listed on the right side of the report and the liabilities and owner's equity accounts are listed on the left side
   4. Assets of a company are listed on the left side of the report and the liabilities and owner's equity accounts are listed on the right side

1. Which of the following is not a component of the balance sheet?
   1. Revenues
   2. Liabilities
   3. Owner's Equity
   4. Assets

1. Which of the following is the correct order of liquidity of current assets?
   1. Cash, marketable securities, accounts receivable, inventories, prepaid expenses
   2. Cash, accounts receivable, marketable securities, inventories, prepaid expenses
   3. Cash, accounts receivable, inventories, prepaid expenses, marketable securities
   4. Cash, marketable securities, inventories, prepaid expenses, accounts receivable

1. Which of the following are included in the long-term liabilities of a business?
   1. Income taxes that are due this year
   2. Payments due this year on a mortgage
   3. Payments due over the full term of a mortgage
   4. Accrued wages due to employees

1. Which of the following is not included in the owners' equity of a business?
2. Common stock
3. Additional paid-in capital
4. Retained earnings
5. Property and equipment

1. Given an accounts receivable balance on the balance sheet of $250,500 and a balance from the previous year of $275,000 for this account, what is the dollar variance?
   1. $ 24,500
   2. ($226,000)
   3. ($ 24,500)
   4. $226,000

1. Given an accounts payable balance on the balance sheet of $189,025 and a balance from the previous year of $166,400 for this account, what is the percentage variance?

a. 88.03%

1. (11.97%)
2. 5.98%
3. 13.60%

1. When calculating percentage variance for an account on the balance sheet, the denominator is .
   1. The prior period's number
   2. The dollar difference between identical categories on two balance sheets
   3. The next period's number
   4. The current period's number

1. The Statement of Cash Flows (SCF)shows all sources and uses of a business's funds resulting from operating,

1. investing, and financing activities.
2. investing, and equity funding activities.
3. equity funding, and debt financing activities.
4. equity funding, and financing activities.

1. Which is NOT needed to prepare a SCF for this year's results?

1. Income statement for this year
2. Balance sheet from last year
3. Income statement for last year
4. Balance sheet from this year