1. Which of the following financial statements provides a summary of a com-pany's
revenue and expenses over a period of time?: The income statement
2. Which of the following financial statements provides you with the owner's change
in capital over time?: The statement of Equity
3. Which of the following financial statements shows the balances of a compa-ny's
assets, equity, and liability: The Balance Sheet
4. Which of the following financial statements provides aggregate data re-garding all
cash inflows a company receives from its ongoing operations and external
investments?: The Statement of Cash Flow
5. A seasonal business liкe Lou's Landscaping can have decreased cash during off-
season months. Which financial statement would show the cash inflows and outflows
for a particular month?: Balance Sheet - WRONG
6. Which of these accounts would have a balance of $0 at the beginning of each new
accounting period?: Revenue
7. A business owner performs a service and is paid when the job is performed. The
owner would then enter this transaction into accounting software as:: A Sales Receipt
8. A business owner performs a service but is not paid when the job is per-formed.
Using their accounting software, the owner would enter the transac-tion as:: An Invoice
9. True or False: The ending cash balance on the Statement of Cash Flow should not
equal the cash balance reported on the Balance Sheet:: False
10. A customer paid in advance for a service. They need to cancel the service. If the
business owner wishes to apply that money towards the customer's next service, the
owner would enter that transaction into their accounting software as:: A Credit Memo
11. True or False: In order to complete a Statement of Equity, you will need the net
profit from the Income Statement.: True
12. True or False: Business owners should use the General Ledger to maкe
business decisions.: False
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revenue and expenses over a period of time?: The income statement
2. Which of the following financial statements provides you with the owner's change
in capital over time?: The statement of Equity
3. Which of the following financial statements shows the balances of a compa-ny's
assets, equity, and liability: The Balance Sheet
4. Which of the following financial statements provides aggregate data re-garding all
cash inflows a company receives from its ongoing operations and external
investments?: The Statement of Cash Flow
5. A seasonal business liкe Lou's Landscaping can have decreased cash during off-
season months. Which financial statement would show the cash inflows and outflows
for a particular month?: Balance Sheet - WRONG
6. Which of these accounts would have a balance of $0 at the beginning of each new
accounting period?: Revenue
7. A business owner performs a service and is paid when the job is performed. The
owner would then enter this transaction into accounting software as:: A Sales Receipt
8. A business owner performs a service but is not paid when the job is per-formed.
Using their accounting software, the owner would enter the transac-tion as:: An Invoice
9. True or False: The ending cash balance on the Statement of Cash Flow should not
equal the cash balance reported on the Balance Sheet:: False
10. A customer paid in advance for a service. They need to cancel the service. If the
business owner wishes to apply that money towards the customer's next service, the
owner would enter that transaction into their accounting software as:: A Credit Memo
11. True or False: In order to complete a Statement of Equity, you will need the net
profit from the Income Statement.: True
12. True or False: Business owners should use the General Ledger to maкe
business decisions.: False
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