Understanding Financial Statements: A Questionnaire to Test Your

Here are the questions from[ACC 200 Ch 1 6e.mp4 - Quiz] 1. The total resources of a company are referred to as: Optional Answers: 1. Liabilities 2. Revenues 3. Assets 4. Expenses 2. The amounts recorded when the company sells products or provides services to customers are referred to as: Optional Answers: 1. Liabilities 2. Revenues 3. Assets 4. Expenses 3. Which of the following accounts would appear in a company's income statement? Optional Answers: 1. Accounts Payable 2. Cash 3. Dividends 4. Rent Expense 4. Which relationship is reflected in the balance sheet? Optional Answers: 1. Revenues − Expenses = Net income 2. Assets = Liabilities + Stockholders' Equity 3. Assets − Liabilities = Net Income 4. Assets = Revenues + Dividends 5. The cash collected from a customer would be recorded as which type of activity in the statement of cash flows? Optional Answers: 1. Operating Activity 2. Business Activity 3. Investing Activity 4. Financing Activity 6. Auditors are independent parties that help: Optional Answers: 1. A. To establish accounting rules in the U.S. 2. B. To ensure management has appropriately prepared the company's financial statements 3. C. Investors and creditors in their decisions by adding credibility to the financial statements 4. D. Both b. and c. are correct 7. Which of the following assumptions indicates that the life of a company can be divided into