Question

1.Which of the following is not a principle financial statement?

a. Group of answer choices

b. Income Statement

c. Statement of Resources Owned

d. Statement of Owner’s Equity

e. Statement of Cash Flows

f. Balance Sheet

2. Transactions affecting owner's equity include:

a. owner's investments and payment of liabilities

b. owner's investments and owner's withdrawals, revenues, and expenses

c. owner's investments, revenues, expenses, and collection of accounts receivable

d. owner's withdrawals, revenues, expenses, and purchase of supplies on account

3. Public accountants are normally

a. Certified Public Accountants

b. Forensic accountants

c. Certified Internal Auditors

d. Certified Management Accountants

4. Which of the following is not true about a manufacturing business?

a. Change inputs to products which are sold to their customers.

b. Their primary goal is to maximize profits.

c. Only large business can be considered a manufacturing business.

d. All are true.

5. There are four transactions that directly affect Owner’s Equity. Which are the two transactions that decrease Owner’s Equity?

a. Owner’s withdrawals and expenses

b. Revenues and expenses

c. Owner’s investments and revenues

d. Owner’s investments and expenses

Answer 1

1 Statement of resources owned 2 b. owner's investments and owner's withdrawals, revenues, and expenses 3 a. Certified public accountants 4 c. Only large business can be considered a manufacturing business 5 a. Owners' withdrawals and expenses