51) Refer to the financial statement above. This financial statement is a(n) ________.
A) income statement
B) statement of changes in shareholders' equity
C) balance sheet
D) statement of cash flows
52) Refer to the financial statement above. Assume that this is the company's first year of business. During the year, the company paid $1,000 in dividends to its owner. Net income for the year must have been ________.
A) $500
B) $2,000
C) $1,500
D) $3,000
53) The financial statement above shows ________.
A) the company's financial position at a single point in time
B) the changes that took place in the company's cash account during the period
C) the changes that took place in shareholders' equity during the period
D) expenses matched with revenues earned for a period of time
54) Dividends are a type of expense shown on the balance sheet.
55) Net income on the income statement will always be greater than net income on the statement of changes in shareholders' equity.
56) The change in cash on the statement of cash flows will always equal net income on the statement of changes in shareholders' equity.
57) The notes to financial statements (also called footnotes) are an integral part of the financial statements and help users to understand what is in the statements.
58) Revenues minus cost of goods sold equals net income.
59) Cash flows from financing activities include contributions from owners.
60) In a corporation, dividends distributed to owners are treated as expenses.
61) An income statement lists assets, liabilities, and shareholders' equity.
62) The statement of cash flows is divided into three sections; assets, liabilities, and shareholders' equity.
63) The statement of cash flows is divided into three sections; operating, investing, and financing.
64) Retained earnings and cash on the balance sheet will always be equal.