Self Assessment Quizzes

CHAPTER 9: Section 1 The Income Statement

	1.	The heading contains three parts, which are

		a.	the owner`s name, address, and phone number
		b.	the company name, report name, and period covered
		c.	the company name, address, and period covered
		d.	the owner`s name, company name, and period covered

	2.	If revenue exceeds expenses, a company has

		a.	net loss
		b.	net income
		c.	fiscal security
		d.	hair net

	3.	The reports prepared to summarize changes resulting from business transactions that occur during an accounting period are called

		a.	transaction summary
		b.	business statements
		c.	financial indicators
		d.	financial statements

	4.	A profit and loss statement is also known as

		a.	an income statement
		b.	a revenue statement
		c.	an earnings statement
		d.	A and C

	5.	The primary reports prepared for a sole proprietorship are a

		a.	balance sheet and income statement
		b.	income statement and transaction summary
		c.	statement of owner`s equity and bed sheet
		d.	work sheet and balance sheet

	6.	Pappy`s Tugboat Service has reported the following information: Assets $34,819, Liabilities $2,499, Capital $32,000, Withdrawals $1,000, Revenue $3,230, Expenses $1,910. The net income for the period is

		a.	$41,320
		b.	$64,640
		c.	$35,320
		d.	$3,230

	7.	The information needed to prepare the income statement comes from

		a.	the balance sheet
		b.	the general ledger
		c.	the income statement section of the work sheet
		d.	the trial balance section of the work sheet