Financial Accounting and Reporting
Chapter 1 Exercises Exam Questions and
Answers Graded A+
For each of the items listed below, identify the appropriate financial statement
element.
1. Obligation to transfer cash or other resources as a result of a past transaction.
2. Dividends paid by a corporation to its shareholders.
3. Inflow of an asset from providing a good or service.
4. The financial position of a company.
5. Increase in equity during a period from nonowner transactions.
6. Increase in equity from peripheral or incidental transaction.
7. Sale of an asset used in the operations of a business for less than the asset's book
value.
8. The owners' residual interest in the assets of a company.
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, 9. An item owned by the company representing probable future benefits.
10. Revenues plus gains less expenses and losses.
11. An owner's contribution of cash to a corporation in exchange for ownership
shares of stock.
12. Outflow of an asset related to the production of revenue. - Correct answer-1.
Liability
2. Distribution to owners
3. Revenue
4. Assets, liabilities and equity
5. Comprehensive income
6. Gain
7. Loss
8. Equity
9. Asset
10. Net income
11. Investment by owner
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Chapter 1 Exercises Exam Questions and
Answers Graded A+
For each of the items listed below, identify the appropriate financial statement
element.
1. Obligation to transfer cash or other resources as a result of a past transaction.
2. Dividends paid by a corporation to its shareholders.
3. Inflow of an asset from providing a good or service.
4. The financial position of a company.
5. Increase in equity during a period from nonowner transactions.
6. Increase in equity from peripheral or incidental transaction.
7. Sale of an asset used in the operations of a business for less than the asset's book
value.
8. The owners' residual interest in the assets of a company.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, 9. An item owned by the company representing probable future benefits.
10. Revenues plus gains less expenses and losses.
11. An owner's contribution of cash to a corporation in exchange for ownership
shares of stock.
12. Outflow of an asset related to the production of revenue. - Correct answer-1.
Liability
2. Distribution to owners
3. Revenue
4. Assets, liabilities and equity
5. Comprehensive income
6. Gain
7. Loss
8. Equity
9. Asset
10. Net income
11. Investment by owner
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
