1 Identify the correct components of the income statement.
revenues, losses, expenses, and gains
assets, liabilities, and owner’s equity
revenues, expenses, investments by owners, distributions to owners
assets, liabilities, and dividends
2. The balance sheet lists which of the following?
assets, liabilities, and owners’ equity
revenues, expenses, gains, and losses
assets, liabilities, and investments by owners
revenues, expenses, gains, and distributions to owners
3. The accounting equation is expressed as ________.
Assets + Liabilities = Owner’s Equity
Assets – Noncurrent Assets = Liabilities
Assets = Liabilities + Investments by Owners
Assets = Liabilities + Owner’s Equity
4. Which of the following is not an element of the financial statements?
future potential sales price of inventory
assets
liabilities
equity
5. Which of the following is the correct order of preparing the financial statements?
income statement, statement of cash flows, balance sheet, statement of owner’s equity
income statement, statement of owner’s equity, balance sheet, statement of cash flows
income statement, balance sheet, statement of owner’s equity, statement of cash flows
income statement, balance sheet, statement of cash flows, statement of owner’s equity