Self Assessment Quizzes

CHAPTER 9: Section 2 The Statement of Changes in Owner’s Equity

	1.	On which of the following statement or statements will net income appear?

		a.	income statement
		b.	statement of changes in owner`s equity
		c.	balance sheet and statement of changes in owner`s equity
		d.	income statement and statement of changes in owner`s equity

	2.	The first line of a statement of changes in owner`s equity is the

		a.	net income
		b.	owner`s investments
		c.	owner`s withdrawals
		d.	beginning capital

	3.	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. During the period Pappy invested an additional $9,000 in the business. The beginning capital balance was

		a.	$32,000
		b.	$23,000
		c.	$9,000
		d.	$73,640

	4.	To prepare a statement of changes in owner`s equity you need to know

		a.	the owner`s name
		b.	the date the company started
		c.	the beginning balance in the capital account
		d.	the address of the company

	5.	Determine the ending capital account balance for Pappy’s Tugboat Service. It reported the following information: Assets $34,819, Liabilities $2,499, Capital $32,000, Withdrawals $1,000, Revenue $3,230, Expenses $1,910. During the period Pappy invested an additional $9,000 in the business.

		a.	$32,320
		b.	$32,000
		c.	$23,000
		d.	$64,640

	6.	The heading for the statement of changes in owner`s equity contains

		a.	name of the business, name of the statement, and period covered
		b.	name of the business, name of the statement, and current date
		c.	name of the business, current date, and period covered
		d.	name of the business, name of the owner, and period covered

	7.	The statement of changes in owner`s equity is prepared

		a.	as needed
		b.	as a supporting document for the income statement
		c.	at the end of the accounting period
		d.	only if there is net income