21) An investor wishes to assess a company's financial position at the end of the period. Which financial statement would the investor probably examine?
A) the cash flow statement
B) the income statement
C) the balance sheet
D) the statement of retained earnings
22) The balance sheet is sometimes also called the:
A) statement of operations
B) statement of cash position
C) statement of financial position
D) statement of income and expense
23) The cash flow statement is divided into three categories relating to cash flows from operating, investing, and:
A) management planning activities
B) financing activities
C) strategic positioning activities
D) marketing activities
24) To determine a company's gross margin for the period, an investor would look on the:
A) balance sheet
B) cash flow statement
C) income statement
D) statement of retained earnings
25) Gains and losses appear on which of the financial statements listed below?
A) the balance sheet
B) the income statement
C) the retained earnings statement
D) the cash flow statement
26) Which of the following represent(s) claims to economic resources?
A) assets, but not liabilities or owners' equity
B) owners' equity, but not assets or liabilities
C) liabilities, but not assets or owners' equity
D) liabilities and owners' equity, but not assets
27) The date of the income statement:
A) covers one day in time
B) covers a period of time, usually for an accounting period
C) is not dated
D) may cover a period of time or only one day in time, like a snapshot photograph
28) Operating expenses appear on the income statement:
A) directly after gross margin
B) directly after cost of goods sold
C) directly after revenue
D) do not appear on the income statement
29) Common shares is a component of:
A) total assets
B) total liabilities
C) share capital
D) retained earnings
30) Cost of goods sold is:
A) added to sales on the income statement
B) deducted from sales on the balance sheet
C) deducted from sales on the income statement
D) added to sales on the retained earnings statement