D. income statement
E. statement of changes in equity
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Hard
Learning Objective: 01-06 Identify and explain the content and reporting aims of financial statements.
Topic: 01-20 Previewing Financial Statements
112. The financial statement that shows the beginning balance of equity, the changes in equity that resulted from new investments by the owner, Profit (or net loss), withdrawals, and the ending balance of equity is the
A. statement of financial position
B. statement of cash flows
C. balance sheet
D. income statement
E. statement of changes in equity
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-06 Identify and explain the content and reporting aims of financial statements.
Topic: 01-20 Previewing Financial Statements
113. Which of the following is an example of a source document?
A. Invoice
B. Cheque
C. Bank statemen
D. Employee earnings records
E. All of these
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-07 Analyze business transactions by applying the accounting equation.
Topic: 01-22 Transaction Analysis
114. To include the personal assets and transactions of a business's owner in the records and reports of the business would be in conflict with the
A. currency
B. historical cost principle
C. business entity principle
D. going concern principle
E. revenue recognition principle
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Identify, explain, and apply accounting principles.
Topic: 01-18 GAAP for Public vs. Private Enterprises
115. The description of the relationship between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the
A. balance sheet
B. accounting equation
C. business equation
D. liability equation
E. profit
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-07 Analyze business transactions by applying the accounting equation.
Topic: 01-21 The Accounting Equation
116. Revenues are
A. profits
B. the amount a business earns after subtracting all expenses from sales
C. business events
D. net assets
E. the value of assets exchanged for goods or services provided to the customer
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-06 Identify and explain the content and reporting aims of financial statements.
Topic: 01-20 Previewing Financial Statements
117. Exchanges between the entity and some other person or organization are
A. internal transactions
B. external transactions
C. business papers
D. source documents
E. investments
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-07 Analyze business transactions by applying the accounting equation.
Topic: 01-08 Internal Information Users
118. A business activity that does not involve an exchange of economic consideration between two parties is called a(n)
A. withdrawal
B. account receivable
C. business transaction
D. business event
E. equity transaction
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-07 Analyze business transactions by applying the accounting equation.
Topic: 01-22 Transaction Analysis
119. Which of the following statements is correct regarding sales invoices?
A. A sales invoice is a type of source document.
B. Sellers use them for recording sales.
C. Buyers use them for recording purchases.
D. They are required for information to be objective.
E. All of these
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-07 Analyze business transactions by applying the accounting equation.
Topic: 01-22 Transaction Analysis
120. A business
A. is one or more individuals selling products or services for profit