Selectthebestanswerforeachofthefollowingquestionsoruncompletedsentences.
1.PleaseselecttheitemswhichdonotbelongtotheBalanceSheet?
A)Long-terminvestment
B)Accountsreceivable
C)Incometaxexpense
D)Retainedearnings
2.Ingeneral,whichisthebasisofpreparingaBalanceSheet?
A)Assets=Liabilities+Owners’Equity.
B)Assets–Liabilities=Owners’Equity.
C)Profits=Revenue–Expenses
D)Revenues=Profit-Expenses
3.Themajorelementsoftheincomestatementare______________.
A)revenue,costofgoodssold,sellingexpenses,andgeneralexpense
B)Operatingsection,non-operatingsection,discontinuedoperations,extraordinaryitemsandcumulativeeffects.
C)revenues,expenses,gainsandlosses.
D)allofthese.
4.Thestatementofcashflowsclassifiescashreceiptsandcashpaymentsbythefollowingactivities:__________.
A)operatingandnon-operating.
B)investing,financing,andoperating.
C)financing,operating,andnon-operating
D)investing,financing,andnon-operating
5.Cashdividendspaidtostockholdersareclassifiedonthestatementofcashflowsas______.
A)operatingactivities
B)investingactivities
C)acombinationoftheabove
D)financingactivities
6.Acreditisontheright-handsideof_____.
A.anassetsaccountonly
B.aliabilityaccountonly
C.anowners’equityaccountonly’
D.allaccounts
7.Whichofthefollowingisacorrectstatementoftherulesofdebitandcredit?______.
A.Debitsincreaseassetsanddecreaseliabilities;
B.Debitsdecreaseassetsandincreaseowners’equity;
C.Creditsincreaseassetsanddecreaseliabilities;
D.Creditsincreaseassetsandincreaseowners’equity;
E.Noneoftheabove
8.Whichofthefollowingisnottrue?______.
A.Increasesinassetsarerecordedasdebits;
B.Increasesinliabilitiesarerecordedasdebits;
C.Decreasesinowners’equity
