31. a snapshot of the financial condition of the firm at a particular time. a. The balance sheet provides b. The income statement provides c. The statement of cash flows provides d. All of the above provide e. None of the above provides
31. a snapshot of the financial condition of the firm at a particular time. a. The balance sheet provides b. The income statement provides c. The statement of cash flows provides d. All of the above provide e. None of the above provides
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:31.
a snapshot of the financial condition of the
firm at a particular time.
a. The balance sheet provides
b. The income statement provides
c. The statement of cash flows provides
d. All of the above provide
e. None of the above provides
32.
of the cash flow generated by the firm's
operations, investments and financial activities.
a. The balance sheet is a report
b. The income statement is a report
c. The statement of cash flows is a report
d. the auditor's statement of financial condition
e. None of the above is a report
33.
of the profitability of the firm over a
period of time such as a year.
a. The balance sheet is a summary
b. The income statement is a summary
c. That statement of cash flows is a summary
d. The audit report is a summary
e. None of the above is a summary
34. This is where you will record the initial capital investment
of the sole proprietor.
a. Cash Receipts Journal
b. Cash Disbursement Journal
c. Special Journal
d. General Journal
35. The following steps of Accounting Process are optional
steps, except
a. Preparation of worksheet
b. Preparation of Post-closing trial balance
c. Reversing entries
d. Closing Entries
e. All of the given choices are optional
Transcribed Image Text:27. Statement 1: The Statement of Financial Position reports
the three accounting elements which are the Assets,
Liabilities and Owner's Equity.
Statement 2: The Statement of Comprehensive Income
presents Revenue and Expense which are temporary
accounts of Owner's Equity.
a. Both statements are true
b. Only Statement 1 is true
c. Only Statement 2 is true
d. Both statements are false
28. Statement 1: The preparation of the Statement of Changes
in Owner's Equity depends on what business organizations
are formed.
Statement 2: Business organizations differ in terms of
number of owners and transferability of ownership.
a. Both statements are true
b. Only Statement 1 is true
c. Only Statement 2 is true
d. Both statements are false
29. Statement 1: The Statement of Financial Position reports
the owner's equity balance at the beginning of the period
while withdrawal and profit are reported in the Statement
of Comprehensive Income.
Statement 2: The Statement of Changes in Owner's Equity
shows the beginning equity of the owner and withdrawal
during the period which is taken from the Statement of
Financial Position.
a. Both statements are true
b. Only Statement 1 is true
c. Only Statement 2 is true
d. Both statements are false
30. Statement 1: Profit for the period which is shown as item
in the Statement of Changes in Owner's Equity is taken
from Statement of Comprehensive Income.
Statement 2: Capital beginning plus additional investment
less capital withdrawal equals capital ending balance of the
owner.
a. Both statements are true
b. Only Statement 1 is true
c. Only Statement 2 is true
d. Both statements are false
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