Accounting Basics - Module 1 of 6

Question 1

The balance sheet shows the financial position of a business according to the formula

Question 2

A multiple step income statement, in part, can be represented by the formula

Question 3

Which of the following is TRUE?

Question 4

The statement of cash flows

Question 5

The statement of owners’ equity is also called the statement of

Question 6

Depreciation expense is

Question 7

Acme Corporation suspects that it may be subject to a products liability suit over one of its allegedly defective products. Of the following list, where is the most likely place a prospective investor would find Acme’s disclosure of this potential liability?

Question 8

In journal entries and T-accounts used in double-entry bookkeeping.

Question 9

Two years ago, Acme Corporation’s financial statements showed assets of $2 million and liabilities of $500,000. How much was Acme’s owners’ equity?

Question 10

For the previous fiscal year, Acme Corporation’s financial statements showed sales of $4,000,000 and cost of goods sold at $1,000,000. What was Acme Corporation’s gross profit?