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

Question 1

Which of the following is NOT one of the primary financial statements?

A Balance Sheet

B Liabilities Statement

C Cash Flows Statement

D Income Statements

Answer 1

B

Question 2

Which of the following financial statements is reported as of a specific date (as opposed to over a period of time)?

A Balance Sheet

B Income Statement

C Retained Earnings Statement

D Cash Flows Statement

Answer 2

A

Question 3

Which of the following is NOT a component of the Cash Flows Statements?

A Operating Cash Flows

B Investing Cash Flows

C Financing Cash Flows

D Production Cash Flows

Answer 3

D

Question 4

Which of the following is correct regarding the Balance Sheet Equation?

A Assets = Liabilities + Shareholders’ Equity

B Assets + Liabilities = Shareholders’ Equity

C Assets = Liabilities – Shareholders’ Equity

D Assets – Liabilities = Shareholders’ Equity

Answer 4

A