31) The balance sheet is also known as the:
A) statement of profit and loss.
B) operating statement.
C) assets statement.
D) statement of financial position.
32) The balance sheet reports information about:
A) revenues, expenses, and equity.
B) liabilities, equity, and expenses.
C) assets, revenues, and liabilities.
D) assets, liabilities, and owners' equity.
33) On the statement of retained earnings:
A) a net loss is shown in parentheses as a deduction.
B) net income decreases retained earnings.
C) dividends declared increase retained earnings.
D) dividends paid increase retained earnings.
34) The net income shown on the income statement also appears on the:
A) balance sheet and operations statement.
B) statement of retained earnings.
C) statement of cash flows, using the indirect method.
D) B and C.
35) The balance sheet contains the:
A) amount of net income or net loss.
B) beginning balance in retained earnings.
C) ending balance in retained earnings.
D) amount of cash dividends paid to stockholders.
36) With regard to cash dividends:
A) they must be paid on a yearly basis.
B) the Board of Directors of the corporation determines if a dividend will be paid.
C) developmental-stage companies will pay large dividends to their shareholders.
D) a corporation must have enough paid-in capital and cash to pay dividends.
37) Which financial statement must be prepared before the others?
A) Statement of cash flows
B) Income statement
C) Balance sheet
D) Statement of retained earnings
38) A company's balance sheet:
A) is dated for a period of time.
B) has three main categories of assets.
C) has two main categories of liabilities.
D) lists liabilities before assets.
39) Current assets are assets expected to be converted to cash, sold, or consumed within the next:
A) 12 months or within the business's normal operating cycle if longer than a year.
B) 12 months or within the business's normal operating cycle if less than a year.
C) 6 months.
D) 24 months.
40) Equipment would appear on the:
A) balance sheet with the long-term assets.
B) income statement with the revenues.
C) income statement with the operating expenses.
D) balance sheet with the current assets.