1. Which of the following is used on the cash flow statement?

   	A.	The cash equivalents from the balance sheet
   	B.	Cash used by investing activities from the income statement
   	C.	Cash provided by financing activities from the statement of shareholders equity
   	D.	All of the above

2 points

QUESTION 6

1. Income statements are also commonly called:

   	A.	Statements of earnings
   	B.	Profit and loss statements
   	C.	Statements of operations
   	D.	All of the above

2 points

QUESTION 7

1. Cash flows from operating activities

   	A.	Generally relate to a companys cash flow from selling stocks and bonds or borrowing from banks
   	B.	Generally relate to a companys purchases and sales of long-term assets
   	C.	Generally relate to a companys cash flow from net income or losses
   	D.	Generally relate to a firms non-cash transactions

2 points

QUESTION 8

1. In what order are the four types of financial statements typically prepared?

   	A.	Balance sheet, cash flow statement, income statement, statement of shareholders equity
   	B.	Cash flow statement, income statement, balance sheet, statement of shareholders equity
   	C.	Income statement, cash flow statement, statement of shareholders equity, balance sheet
   	D.	Income statement, statement of shareholders equity, balance sheet, cash flow statement

2 points

QUESTION 9

1. Which financial statement includes operating expenses?

   	A.	Balance sheet
   	B.	Income statement
   	C.	Cash flow statement
   	D.	Statement of shareholders equity

2 points

QUESTION 10

1. Cash flows from financing activities

   	A.	Generally relate to a companys cash flow from selling its own stocks and bonds or borrowing from banks
   	B.	Generally relate to a companys purchases and sales of long-term assets
   	C.	Generally relate to a companys cash flow from net income or losses
   	D.	Generally relate to a firms non-cash transactions

2 points

QUESTION 11

1. For the balance sheet, which of the following statements is true?

   	A.	Capital investment equals interest income minus interest expense
   	B.	Total assets equals total liabilities and equity
   	C.	Income equals revenue minus expenses
   	D.	Operating income equals revenues minus assets

2 points

QUESTION 12

1. Which of the following financial statements is prepared as of a specific date?

   	A.	The balance sheet
   	B.	The statement of stockholders equity
   	C.	Statement of retained earnings
   	D.	Income statement
   	E.	Cash flow statement

2 points

QUESTION 13

1. What information from the income statement is needed for the statement of shareholders equity?

   	A.	Net income
   	B.	Operating income
   	C.	Income before income taxes
   	D.	Operating expenses

2 points

QUESTION 14

1. Which financial statement shows detailed information about a companys assets, liabilities, and shareholders equity at a point in time?

   	A.	Balance sheet
   	B.	Income statement
   	C.	Cash flow statement
   	D.	Statement of shareholders equity

2 points

QUESTION 15

1. The business review section of a companys annual report could best be described as

   	A.	An overview of the companys business and financial performance
   	B.	A summary of the companys recent developments, trends, and objectives
   	C.	A description of the companys business performance in dollar terms
   	D.	An analysis of the companys risks and opportunities

2 points

QUESTION 16

1. The four financial statements must be prepared in order because

   	A.	It is required by law
   	B.	The cash flow statement uses data from the income statement
   	C.	This is the order that the forms must be filed
   	D.	Information from each statement is needed to prepare the next statement

2 points

QUESTION 17

1. Cash flow statements do not include which of the following sections?

   	A.	Cash provided by operating activities
   	B.	Cash used in payroll expenses
   	C.	Cash used in investing activities
   	D.	Cash provided by (used by) financing activities

2 points

QUESTION 18

1. Which financial statement includes revenues?

   	A.	Balance sheet
   	B.	Income statement
   	C.	Cash flow statement
   	D.	Statement of shareholders equity

2 points

QUESTION 19

1. Revenues, expenses, and net income are elements of which of the following financial statements?

   	A.	The balance sheet
   	B.	The statement of stockholders equity
   	C.	Statement of retained earnings
   	D.	Income statement
   	E.	Statement of cash flow

2 points

QUESTION 20

1. Which financial statement shows how much income a company earned over a specific period?

   	A.	Balance sheet
   	B.	Income statement
   	C.	Cash flow statement
   	D.	Statement of shareholders equity

2 points

QUESTION 21

1. Which of the following statements measures operating income by subtracting the operating expenses from the gross margin?

   	A.	The balance sheet
   	B.	The balance sheet
   	C.	Statement of retained earnings
   	D.	Income statement
   	E.	Cash flow statement

2 points

QUESTION 22

1. The statement of shareholders equity is also called

   	A.	The statement of changes in equity and retained earnings
   	B.	The statement of stockholders equity
   	C.	Statement of retained earnings
   	D.	All of the above

2 points

QUESTION 23

1. Which financial statement includes property and equipment?

   	A.	Balance sheet
   	B.	Income statement
   	C.	Cash flow statement
   	D.	Statement of shareholders equity

2 points

QUESTION 24

1. An income statement shows which of the following?

   	A.	Assets, equity, and liabilities
   	B.	Revenue minus expenses
   	C.	The amount of cash that flows into a company over a period of time
   	D.	All of the above

2 points

QUESTION 25

1. Which financial statement includes accounts payable?

   	A.	Balance sheet
   	B.	Income statement
   	C.	Cash flow statement
   	D.	Statement of shareholders equity

2 points

QUESTION 26

1. What information from the statement of shareholders equity is needed for the balance sheet?

   	A.	Interest income
   	B.	Dividends declared
   	C.	Net income
   	D.	Retained earnings

2 points

QUESTION 27

1. Which financial statement includes dividends?

   	A.	Balance sheet
   	B.	Income statement
   	C.	Cash flow statement
   	D.	Statement of shareholders equity

2 points

QUESTION 28

1. Which financial statement shows changes in the interests of the companys shareholders over a specific period?

   	A.	Balance sheet
   	B.	Income statement
   	C.	Cash flow statement
   	D.	Statement of shareholders equity

2 points

QUESTION 29

1. On the income statement, expenses that are not related to the operations of the business fall under which of the following?

   	A.	Operating income
   	B.	Other expenses
   	C.	Revenues
   	D.	Stockholders equity

2 points

QUESTION 30

1. Which financial statement shows the flow of cash into and out of a company over a specific period?

   	A.	Balance sheet
   	B.	Income statement
   	C.	Cash flow statement
   	D.	Statement of shareholders equity

2 points

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