Statements

Question 1

Income Statement (Net Income)

Answer 1

Revenues - Expenses = Net Income

How well the company performed during a specified period

Question 2

Statement of Retained Earnings (Now called Statement of Changes in Equity)

Answer 2

(Beginning Retained Earnings) + (Net Income or Net Loss) - Dividends = (Ending Retained Earnings)
Company’s Retained Earnings change during the period

Question 3

Cash Flow Statement

Answer 3

(Operating Cash Flows) +/- (Investing Cash Flows) +/- (Financing Cash Flows) = (Increase or Decrease in Cash)

Question 4

Current Assets

Answer 4

Inventories
Office Supplies
Accounts receivables
Marketable securities
Cash

Question 5

Non-Current Assets

Answer 5

Plant, property and Equipment (PPE)

Question 6

Current Liabilities

Answer 6

Accounts payables

Notes payable

Question 7

Non-Current Liabilities

Answer 7

Long-term debt

Question 8

Current portion of long-term debt

Answer 8

Portion of long term debt calculated in the year of relevance

Question 9

Debit

Answer 9

Assets
Expenses
Dividends

Question 10

Credit

Answer 10

Liabilities
Stock Holders Equity
- Retained Earnings Earned
- Contributed Investment

Question 11

Debit column

Answer 11

Debit increase assets and decrease liabilities

Question 12

Credit column

Answer 12

Credit increases liabilities and decreases assets

Question 13

Expenses on owner’s equity

Answer 13

Decrease owner’s equity - recorded on debit side

Question 14

Revenue Normal Balance

Answer 14

Increase Credit

Question 15

Expenses Normal Balance

Answer 15

Increase Debit

Question 16

Owner’s Equity

Answer 16

Owners Capital - Owners Drawings + Revenues - Expenses