1. Which of the following is not a core financial statement?

   1. The Income Statement
   2. Statement of Cash Flows
   3. The Trial Balance
   4. The Balance Sheet

2. The income statement, which presents the results of operations, can be prepared in many forms including:

   1. Single Step Income Statement
   2. Condensed Income Statement
   3. Common Sized Income Statement
   4. All of the above

3. Which of the following account types increase by debits in double-entry accounting?

   1. Assets, Expenses, Losses
   2. Assets, Revenue, Gains
   3. Expenses, Liabilities, Losses
   4. Gains, Expenses, Liabilities

4. Which of the following is true?

   1. Accounts receivable are found in the current asset section of a balance sheet.
   2. Accounts receivable increase by credits.
   3. Accounts receivable are generated when a customer makes payments.
   4. Accounts receivable become more valuable over time.

5. A company that uses the cash basis of accounting will:

   1. Record revenue when it is collected.
   2. Record revenue when it is earned.
   3. Record revenue at the same time as accounts receivable.
   4. Record bad debt expense on the income statement.

6. What are the main sections on a balance sheet?

   1. Assets, liabilities, income
   2. Assets, liabilities, equity
   3. Assets, liabilities, expenses
   4. Assets, gains, revenue

7. How are a company’s financial statements used?

   1. For internal analysis
   2. For external negotiation
   3. For compliance
   4. All of the above

8. Which of the following scenarios increases accounts payable?

   1. A customer fails to pay an invoice.
   2. A supplier delivers raw materials on credit.
   3. Office supplies are purchased with cash.
   4. None of the above