Topic: 01-20 Previewing Financial Statements
165. An exchange of economic consideration between two parties that causes a change in assets, liabilities or equity is called
A. business transaction
B. liabilities.
C. source documents
D. external transactions
E. prepaid expenses
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-07 Analyze business transactions by applying the accounting equation.
Topic: 01-22 Transaction Analysis
166. Which financial statement shows whether the business earned a profit or loss, and also lists the types and amounts of the revenues and expenses?
A. Balance sheet
B. Statement of changes in equity
C. Statement of cash flow
D. Income statement.
E. Statement of financial position
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-06 Identify and explain the content and reporting aims of financial statements.
Topic: 01-20 Previewing Financial Statements
167. A financial statement providing information that helps users understand a company's financial status at a specific date, is called a(n)
A. balance sheet
B. income statement
C. statement of cash flows
D. statement of changes in equity
E. bank statement
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
168. Cash investments by owners are listed on which of the following statement(s)?
A. Balance sheet
B. Income statement
C. Statement of changes in equity
D. Statement of cash flows
E. Both a statement of changes in equity and statement of cash flows
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
169. Profit appears on which of the following statement(s)?
A. Balance sheet
B. Income statement
C. Statement of changes in equity
D. Statement of cash flows
E. Both an income statement and 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
170. Salaries paid with cash appear on which of the following statement(s)?
A. Balance sheet
B. Income statement
C. Statement of changes in equity
D. Statement of cash flow.
E. Both an income statement and statement of cash flows
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
171. Fees earned by a business in exchange for services provided by the business appear on which of the following statements?
A. Balance sheet
B. Income statement
C. Statement of changes in equity
D. Statement of cash flows
E. Statement of financial position
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-06 Identify and explain the content and reporting aims of financial statements.
Topic: 01-20 Previewing Financial Statements
172. The balance sheet equation is
A. revenues minus expenses equals profit
B. debits equal credits
C. the bookkeeping phase of accounting
D. another name for the accounting equation
E. assets minus liabilities
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-07 Analyze business transactions by applying the accounting equation.
Topic: 01-21 The Accounting Equation
173. According to generally accepted accounting principles, a company's balance sheet should show the company's assets at
A. the cash equivalent value of what was given up or the asset received, whichever is more clearly evident
B. the market value of the asset received in all cases