Quiz - Financial Statements

Question 1 

1. Which financial statement would indicate what things a company owns?

   Answer
   

   		Statement of Cash Flows
   		Balance Sheet
   		Income Statement
   		Statement of Owners' Equity

Question 2 

1. Inventory

   Answer
   

   		is effectively the same as revenue.
   		is what the company intends to use in its operations.
   		is what the company intends to sell.
   		equals amounts owed by the company’s customers.
   		is effectively the same as equipment.

Question 3 

1. Accounts payable represents

   Answer
   

   		amounts owed to the company by owners.
   		amounts owed by the company to owners.
   		amounts owed to the company by customers.
   		amounts owed by the company to creditors.

Question 4

1. Which financial statement would give the best indication of a company's ability to generate a profit?

   Answer
   

   		Statement of Cash Flows
   		Balance Sheet
   		Income Statement
   		Statement of Owners' EquityQuestion 5

1. If a company reported total assets of $12,000 and total liabilities of $4,000 then what is the company’s total equity?

   Answer