21 which of the following best describes the purpose of the balance sheet a summariz 4352188

21.Which of the following best describes the purpose of the balance sheet?

a.summarize revenues and expenses for the accounting period

b.report the inflows and outflows of cash

c.balance current period revenues with those of the previous period

d.report assets, liabilities and owner's equity as of a specific date

22.Which of the following financial statements reports information about events that occurred during a certain period of time?

Balance Sheet    Income Statement

a.Yes             Yes

b.Yes             No

c.No              Yes

d.No              No

23.Total assets, liabilities and owner's equity are reported on which of the following statements?

Balance Sheet     Income Statement

a.Yes             Yes

b.Yes             No

c.No              Yes

d.No              No

24.The balance sheet differs from the other financial statements in that

a.it is the most important statement to the investor

b.it is prepared more frequently

c.it is dated as of a specific point in time

d.its purpose is to show where cash came from during the period, and how the cash was used

25.Which of the following financial statements reports the resources available for use in the transformation process as well as any claims to those resources at a point in time?

a.the income statement

b.the cash-flow statement

c.the balance sheet

d.the annual report

26.Assume you are examining a financial statement that indicates it is “At December 31, 2007.” That heading tells you the statement is the

a.income statement

b.balance sheet

c.statement of cash flows

d.statement of stockholders' equity

27.Which financial statement(s) report(s) the financial position of the firm at a specific point in time?

a.the balance sheet, income statement, and statement of cash flows

b.the balance sheet and income statement

c.the income statement only

d.the balance sheet only

28.The income statement reports which of the following?

a.assets and liabilities

b.cash inflows and cash outflows

c.revenues and expenses

d.retained earnings and dividends

29.Comprehensive income is

a.another term for operating income

b.the change in equity resulting from non-owner transactions and events

c.the income earned by a company

d.dividend income

30.A statement of stockholders' equity differs from a balance sheet in that

a.stockholders' equity is not reported on the balance sheet

b.the statement of stockholders' equity reports activity for a period of time while the balance sheet reports at a specific point in time

c.contributed capital is reported on the statement of stockholders' equity but not on the balance sheet

d.retained earnings are added to the balance sheet but deducted from the statement of stockholders' equity

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