Formulas and stuff

Question 1

describe the order in which a company prepares financial statements

Answer 1

1. income statement
2. statement of retained earnings
3. balance sheet
4. statement of cash flows

Question 2

identify the items that reflect the proper heading on an income statement

Answer 2

1. the company name is listed at the top of the heading
2. the date line shows a period of time
3. the name of the financial statement is listed on the second line under the name of the company.

Question 3

identify the items that reflect the proper heading on the balance sheet

Answer 3

1. the company name is listed at the top of the heading
2. the name of the financial statement is listed after the name of the company
3. the date line shows a specific date.

Question 4

identify the main sections on a statement of cash flows

Answer 4

cash flows from:

1. investing activities
2. financing activities
3. operating activities

Question 5

what are some accounts that can appear on the balance sheet

Answer 5

cash, retained earnings, supplies, accounts payable, equipment

Question 6

income statement

Answer 6

reports the revenues and expenses incurred by a business for a period of time

Question 6

balance sheet

Answer 6

reports the balance of assets, liabilities and equity at a point in time

Question 7

statement of retained earnings

Answer 7

reports the changes in equity during a period of time

Question 8

statement of cash flows

Answer 8

identifies the cash inflows and outflows over a period of time

Question 9

buying and selling of long term assets such as land and equipment would be included in what activities section in the statement of cash flows

Answer 9

investing

Question 10

What is return on assets?

Answer 10

net income/ average total assets

(net income / beginning assets + ending assets/ 2)