Finacial Statements Exam!

Question 1

Write a heading for a finacial heading?

Answer 1

company name
type of fincaial statement
time period

Question 2

What type of finacnial statement does operating expenses go on?

Answer 2

Income statement
under operating expense

Question 3

What type of finacnial statement does land go on?

Answer 3

balance sheet
under asset - property plant and equipment
long term assets

Question 4

What type of finacnial statement does accumulated depreciation go on?

Answer 4

balance sheet
Contra asset - subtract under property plant and equipment
Long term asset

Question 5

What type of finacnial statement does accounts payable go on?

Answer 5

balance sheet
under current liabilities

Question 6

What type of finacnial statement does unearned revenue go on?

Answer 6

balance sheet
under current liabilities

Question 7

What type of finacnial statement does warranties payable (short term) go on?

Answer 7

balance sheet
under current liabilities

Question 8

What type of finacnial statement does equipment go on?

Answer 8

balance sheet
under assets under property, plant, and equipment
long term asset

Question 9

What type of finacnial statement does notes payable (long term) go on?

Answer 9

balance sheet
under long-term liabilities

Question 10

What type of finacnial statement does salvage value of equipment go on?

Answer 10

none!
statement of cash flow

Question 11

What type of finacnial statement does dividends go on?

Answer 11

none!
statement of cash flow!

Question 12

What type of finacnial statement does warranty expense go on?

Answer 12

income statment
under operating expense

Question 13

What type of finacnial statement does beginning retained earnings go on?

Answer 13

balance sheet
under stockholders equity but you have to do something to it first because you dont want beginning retained earnings you just want retained earnings

Question 14

What type of finacnial statement does interest revenue go on?

Answer 14

income statment
under non-operating items

Question 15

What type of finacnial statement doesgain on sale of equipment go on?

Answer 15

income statment
under non-operating items

Question 16

What type of finacnial statement does gain on inventory go on?

Answer 16

balance sheet
assets

Question 17

What type of finacnial statement does notes recievable (short term) go on?

Answer 17

balance sheet
short term assets

Question 18

What type of finacnial statement does cash go on?

Answer 18

balance sheet
under asset

Question 19

What type of finacnial statement does intrest receivable (short term) go on?

Answer 19

balance sheet
under short term asset

Question 20

What type of finacnial statement does cash flow from investing activities go on?

Answer 20

none!
statement of cash flow

Question 21

What type of finacnial statement does allowance for doubtful accounts on?

Answer 21

balance sheet
under assets - subtract because it is a contra asset account

Question 22

What type of finacnial statement does intrest payable (short term) go on?

Answer 22

balance sheet
under current liabilities

Question 23

What type of finacnial statement does sales revenue go on?

Answer 23

income statement
used to find gross margin

Question 24

What type of finacnial statement does uncollectable accounts expense go on?

Answer 24

income statment
under operating expenses

Question 25

What type of finacnial statement does intrest expense go on?

Answer 25

income statment under non-operating items

Question 26

What type of finacnial statement does accounts recievable go on?

Answer 26

balance sheet under assets

Question 27

What type of finacnial statement does salaries payable go on?

Answer 27

balance sheet under current liabilities

Question 28

What type of finacnial statement does supplies go on?

Answer 28

balance sheet under assets

Question 29

What type of finacnial statement does prepaid rent go on?

Answer 29

balance sheet under asssets

Question 30

What type of finacnial statement does common stock go on?

Answer 30

balance sheet under stockholders equity

Question 31

What type of finacnial statement doescost of goods sold go on?

Answer 31

income statement used to find gross margin

Question 32

What type of finacnial statement does salaries expense go on?

Answer 32

income statement under operating expenses

Question 33

What type of finacnial statement does building go on?

Answer 33

balance sheet under long term assets

Question 34

What type of finacnial statement does Depreciation expense go on?

Answer 34

income statment under operating expenses

Question 35

What type of finacnial statement does merchandise inventory go on?

Answer 35

balance sheet under short term assets

Question 36

what are the two things you are calculating for on the income statment?

Answer 36

(1) gross margin (2) net income

Question 37

What do you do to signify the end of the statement?

Answer 37

draw to two lines after the last number

Question 38

How do you find retained earnings?

Answer 38

Beginning retained earnings + net income/ - net losses - cash dividends - stock dividends = retained earnings

Question 39

what is the accounts receivables equation?

Answer 39

accounts recivables = sales - amount recieved

Question 40

when figuring out what is going to be left uncollected from accounts receivale you credit what account? And how do you figure out how much is in that account?

Answer 40

allowance for doubtful accounts subtract because it is a contra asset account allowance for dountful accounts = accounts recivables * estimated % that wll be uncollected

Question 41

bonds payable

Answer 41

long term liabilities

Question 42

wages payable

Answer 42

current liabilities

Question 43

taxes payable

Answer 43

current liabilities

Question 44

prepaid insurance

Answer 44

current assests

Question 45

natural resources

Answer 45

long term asset

Question 46

goodwill

Answer 46

long term asset

Question 47

patents

Answer 47

long term asset

Question 48

book value

Answer 48

long term asset

Question 49

2 steps to an income statement

Answer 49

(1) sales revenue - COGS = Gross margin (2) gross marin - expenses = net income / net loss

Question 50

marketable securities

Answer 50

short term asset

Question 51

supplies

Answer 51

short term asset

Question 52

unearned revenue

Answer 52

short term liability

Question 53

current ratio

Answer 53

current assets / current liabilities

Question 54

Definition for financial statements

Answer 54

Reports used to communicate a company’s financial information to interested external parties. The four general-purpose financial statements are the income statement, statement of changes in equity, balance sheet, and statement of cash flows.

Question 55

time period for a balance sheet

Answer 55

As of December 31, Year 1

Question 56

selling and admin expense

Answer 56

operating expene -IS