Question

5.
Which of the following is NOT true about financial statements?

the balance sheet reports the financial position of a business at a particular point in time
the income statement reports the net cash received during the period as a result of operating activities
the statement of cash flows reports the inflows and outflows of cash for the period
the statement of stockholders' equity includes information about net income and dividends for the period

6.
Which of the following best describes the purpose of the balance sheet?

summarize revenues and expenses for the accounting period
report the inflows and outflows of cash
balance current period revenues with those of the previous period
report assets, liabilities, and owner's equity as of a specific date

7.
Which of the following statements about earnings per share is NOT TRUE?

GAAP require that corporate income statements prepared for external use present earnings per share
earnings per share is a measure of the earnings performance of each share of common stock during a period
earnings per share is a measure of the amount of dividends per share distributed to stockholders during a period
earnings per share is computed by dividing net income by the number of common shares outstanding during a period

9.
The way a company accounts for human resources is an example of which of the following financial statement limitations?
use of estimates and allocations
use of historical costs
omission of transactions
omission of resources and costs

10. Which of the following is NOT one of the three primary financial statements organizations use to report to external decision makers? 
statement of cash flows
balance sheet
gross profit statement
income statement


13. Which of the following is NOT reported on the income statement?  
income taxes
non-operating items
accumulated depreciation
earnings per share


15.
Generally Accepted Accounting Principles (GAAP) prohibits the use of estimates in preparing financial statements.
True
False


18. The financial statement that reports an organization's assets, liabilities, and owners' equity accounts is the  
income statement
gross profit statement
balance sheet
statement of cash flows

Answer 1

5. the income statement reports the net cash received during the period as a result of operating activities

6. report assets, liabilities, and owner's equity as of a specific date

7. earnings per share is a measure of the amount of dividends per share distributed to stockholders during a period

9. omission of resources and costs

10. gross profit statement

13. non-operating items

15. False

18. balance sheet

Answer 2

4 Omission of resources and costs 10.

Answer 3

3 gross profit statement 13.

Answer 4

2 The income statement reports the net cash received during the period as a result of operating activities 6.

Answer 5

3Balance sheet

Answer 6

4Report assets, liabilities, and owner's equity as of a specific date 7.

Answer 7

2 Non-operating items 15.