Question 1
Which of the following equations best describes the income statement?
Assets − Liabilities = Stockholders' Equity
Net income = Revenues + Expenses
Net income = Revenues - Expenses
Retained earnings = Net Income + Dividends
Question 2
Which of the following transactions increases both cash and net income?
Cash receipts from a bank loan.
Cash receipts from the sale of common stock.
Cash receipts from customers for services provided.
Cash payments for cost of goods sold.
Question 3
Assets amount to $35,000 at the beginning of the period and $40,000 at the end of the period. Liabilities amount to $10,000 at the beginning of the period and $20,000 at the end of the period. What is the amount of the change and the direction of the change in owners' equity for the period?
Increase of $15,000
Increase of $5,000
Increase of $10,000
Decrease of $5,000
22 more questions in this paper
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More on the Financial Accounting Quiz 1 Undated paper
The IIT Madras BS Financial Accounting (Financial Accounting) Quiz 1 paper sat on Undated, in the Undated: 25 questions for 25 marks in 120 minutes. The first 3 questions are below. Sign in with Google — it is free — to see the whole paper with its answers and explanations, in learning mode or as a timed mock test.
| Feature | Financial Accounting Quiz 1 Undated at a glance |
|---|---|
| Term | Undated |
| Subject | Financial Accounting |
| Questions | 25 |
| Marks | 25 |
| Duration | 120 min |
| MCQ | 25 |
| Negative marking | No negative marking. |
| Updated |