Welcome to Financial Statements Preparation from the Accounting Equation. Here are the questions you can practice with multiple choice answers. Answer all the questions and see your scores.
1.
Which of the following represents the residual interest in the assets of a company after deducting liabilities?
2.
What is the formula for calculating net income on the income statement?
3.
On the balance sheet, which of the following represents the obligations of the business?
4.
When preparing financial statements from the accounting equation, which component represents what the business owns?
5.
What is the financial statement that reports a company's assets, liabilities, and owner's equity at a specific point in time?
6.
Which financial statement is used to determine a company's profitability over a period of time?
7.
If a company's assets are $100,000 and its liabilities are $50,000, what is the owner's equity?
8.
Which financial statement reports a company's revenues and expenses over a period of time?
9.
What is the formula for calculating Owner's Equity on the balance sheet?
10.
What does the Income Statement report?
