Elements of the Balance Sheet, Income Statement, and Statement of Cash Flows

Question 1

Which of the following is an example of an ASSET?

A Prepaid Rent

B Retained Earnings

C Accounts Payable

D Common Stock

Answer 1

A

Question 2

Each of the follow is a component of Contributed Capital EXCEPT:

A Preferred Stock

B Additional Paid-In Capital

C Bonds Payable

D Common Stock

Answer 2

C

Question 3

Which statement regarding the differences between Revenues and Gains is correct?

A Revenues are short-term and Gains are long-term

B Revenues are long-term and Gains are short-term

C Revenues relate to core business activities while Gains do not

D Revenues do not relate to core business activities but Gains do

Answer 3

C

Question 4

An increase to non-cash operating assets has what affect on Cash Flows from Operations?

A No effect

B Increase to Cash Flow from Operations

C Decrease to Cash Flow from Operations

D Unable to determine based on the above information

Answer 4

C

Question 5

All of the following are considered Financing Cash Flows EXCEPT:

A Dividend Payment

B Issue Common Stock for Cash

C Pay off existing Debt

D Purchase of Investment Securities

Answer 5

D