Chap 1

Question 1

What appears on a income statement

Answer 1

Revenues
Supplies Expense

Question 2

Ending retained earnings appears on the

Answer 2

• Balance Sheet
• Statement of Cash Flows

Question 3

Three business activities

Answer 3

• operating activities
• investing activities
• financing activities

Question 4

Four primary financial statements published to provide information to external users which of the following

Answer 4

• balance sheet
• income statement
• statement of stockholders equity
  -statement of cash flows

Question 5

Sole proprietorship

Answer 5

Owners are personally responsible for the debts of the business

Question 6

Partnership

Answer 6

Partnership has more than one owner
Partnership has income taxed twice

Question 7

Which accounts require a debit entry to increase the account

Answer 7

• Revenue
• cash
  -utility expense

Question 8

Which accounts normally have a credit balance?

Answer 8

-retained earnings
- common stock