6) On which financial statement would you find the ending Capital balance?

A) Income statement

B) Balance Sheet

C) Statement of owner’s equity

D) Both B and C are correct.

7) Which of the following is prepared last?

A) Balance Sheet

B) Income Statement

C) Statement of Owner’s Equity

D) Trial Balance

 

8) Net income or net loss for a period is calculated by the following formula:

A) total revenues – total withdrawals.

B) total revenues – total expenses – total withdrawals.

C) total revenues – total expenses.

D) total revenues – total expenses + capital.

 

9) Which type of account would not be reported on the balance sheet?

A) Expense

B) Cash

C) Accounts Payable

D) Accounts Receivable

 

10) What is X-cel Company’s net income or net loss if it had Revenue of $1,800, Salary Expense of $500, Utility Expense of $250, and Withdrawals of $5,000 during October?

A) $50 net income

B) $1,050 net loss

C) $1,050 net income

D) $50 net loss

 

11) The financial statements contain debit and credit columns.

12) Withdrawals and expenses are reported on the income statement.

 

13) Accounts Payable appears on the income statement.

 

14) Wages Expense appears on the balance sheet.

 

15) Determine the ending owner’s equity of a business having a beginning owner’s equity of $9,500, additional investments of $450 withdrawals of $1,000, and net income of $1,400.

$ ________

 

16) Determine the beginning owner’s equity of a business having an ending owner’s equity of $3,500, additional investments of $600 withdrawals of $500, and net loss of $750.

$ ________

 

17) Determine the beginning owner’s equity of a business having beginning assets of $10,000, ending liabilities of $5,000. During the year the liabilities decreased by $1,000.

$ ________

 

 

 



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