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Income Statement
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Income Statement
Income Statement
Accounting Play 1
2022-11-07T16:17:21+00:00
Quiz - Income Statement
1
Information
2
Question 1-10
3
Question 11-20
4
Question 21-30
5
Question 31-40
6
Question 41-51
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1. Incidental increases in net asset transactions:
Losses
Gains
Exchange
Revenues
2. Includes both operating and non-operating income:
Gains
Comprehensive income
Earnings
Revenues
3. Earned income through regular operations:
Gains
Other comprehensive income
Revenues
Comprehensive income
4. Performance measure:
Assets
Earnings
Liabilities
Expense
5. What period of time does the income statement always cover?
Three months
Any period of time
One year
Two years
6. What is another name for the income statement?
Balance sheet
Owners' equity
Profit & loss
Cash flows
7. Under both cash and accrual basis accounting,
inventory
purchases using cash affects which accounts?
Cash,
Inventory
Cash, Expense
Cash, Cost of goods sold
Cash, Accrued expense
8.
Inventory
is an asset until:
Paid for
Sold
Manufactured
Stored
9. Which of the following is true regarding the income statement:
Reports financial position at a point in time
Reports financial performance for a period of time
Reports sources and changes of equity
Reports changes in cash between accounting periods
10. All of the following are income statement accounts except:
Sales
revenue
Bonds
Cost of goods sold
General expenses
11. What is another name for the income statement?
Profit and loss
Balance sheet
Statement of
shareholders
’ equity
All of the above
12. Why can the income statement time period be compared to a video?
Reports activity at a point in time
Reports activity during a period of time
Reports changes in equity
Reports details not covered in the other financials
13. The income statement reflects the following formula:
Assets = Liabilities + Equity
Change in equity = Beginning
retained earnings
- Ending
retained earnings
Revenue
– Expense = Profit or Loss
All of the above
14. When is
revenue
typically recorded under the cash basis of accounting?
Sale is made
Collection is likely
Accounts receivable
increases
Cash is received
15. When is
revenue
typically recorded under the accrual of accounting?
When earned
When cash is collected
When noted
When projected
16. When does cost of goods sold increase?
Inventory
is purchased
Inventory
is sold
Goods are manufactured
Goods are counted
17. How do you calculate
gross profit
?
Assets = Liabilities + Equity
Beginning
retained earnings
- Ending
retained earnings
Revenue
– Cost of goods sold
Revenue
– Expenses
18. What does COGS stand for?
Cost of gummies sold
Cash over goods sold
Cost overhead goods standing
Cost of goods sold
19. Profit or loss is recorded to what balance sheet account?
Retained earnings
Cash
Common stock
Treasury stock
20. The income statement measures:
Liquidity
Financial performance
Cash flow
All of the above
21. The ending result of what financial statement is recorded to
retained earnings
?
Statement of cash flows
Balance sheet
Income statement
Notes
22. How might a charity refer to what is typically considered profit?
Net income
Change in
retained earnings
Change in net assets
All of the above
23. How might a small business refer to what may be thought of as an income statement?
Change in
retained earnings
Trial balance
Bank reconciliation
Profit and loss
24. What is the typical way COGS is calculated?
Beginning
inventory
+ Purchases - Ending
inventory
Assets = Liabilities + Equity
Equity = Assets - Liabilities
Beginning cash - Ending cash
25. If you know beginning
inventory
, ending
inventory
, and COGS, you can calculate
inventory
purchases:
True
False
26. COGS typically appears after what, on which financial statement?
Cash, Balance sheet
Office expense, Income statement
Revenue
, Income statement
Accrued expense, Balance sheet
27. The income statement heading will reflect a:
Point in time
Time period
