1. Which of the following statements is correct? A. Assets on the balance sheet include retained earnings. B. Retained earnings include contributed capital. C. The balance sheet equation states that assets equal contributed capital. D. A corporation's net income does not necessarily equal its cash flow from operations. 2. A list of all accounts and the identification number assigned to each account used by a company is called a: A. Source document. B. Journal. C. Trial balance. D. Chart of accounts. E. General Journal. 3. Which financial statement would you utilize to determine whether a company will be able to pay liabilities which are due in 30 days?
1. Which of the following statements is correct? A. Assets on the balance sheet include retained earnings. B. Retained earnings include contributed capital. C. The balance sheet equation states that assets equal contributed capital. D. A corporation's net income does not necessarily equal its cash flow from operations. 2. A list of all accounts and the identification number assigned to each account used by a company is called a: A. Source document. B. Journal. C. Trial balance. D. Chart of accounts. E. General Journal. 3. Which financial statement would you utilize to determine whether a company will be able to pay liabilities which are due in 30 days?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1. Which of the following statements is correct?
A. Assets on the balance sheet include retained earnings.
B. Retained earnings include contributed capital.
C. The balance sheet equation states that assets equal contributed capital.
D. A corporation's net income does not necessarily equal its cash flow from
operations.
2. A list of all accounts and the identification number assigned to each account
used by a company is called a:
A. Source document.
B. Journal.
C. Trial balance.
D. Chart of accounts.
E. General Journal.
3. Which financial statement would you utilize to determine whether a
company
will be able to pay liabilities which are due in 30 days?
A. Income statement
B. Balance sheet
C. Statement of retained earnings
D. Statement of cash flows
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