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 financial statement is used to determine a company's profitability over a period of time?
2.
What is the formula for calculating net income on the income statement?
3.
What is the financial statement that reports a company's assets, liabilities, and owner's equity at a specific point in time?
4.
If a company's assets are $100,000 and its liabilities are $50,000, what is the owner's equity?
5.
Which of the following represents the residual interest in the assets of a company after deducting liabilities?
6.
On the balance sheet, which of the following represents the obligations of the business?
7.
Which financial statement reports a company's revenues and expenses over a period of time?
8.
What does the Income Statement report?
9.
What is the formula for calculating Owner's Equity on the balance sheet?
10.
When preparing financial statements from the accounting equation, which component represents what the business owns?
