CopyrightG2020G©GMcGraw-
HillGEducation.GAllGrightsGreserved.GNoGreproductionGorGdistributionGwithoutGtheGpriorG
writtenGconsentGofGMcGraw-HillGEducation.G
Finance,G5eG(Cornett)GG
ChapterG2GGGReviewingGFinancialGStatementsG
G
1)GWhichGfinancialGstatementGreportsGaGfirm'sGassets,Gliabilities,GandGequityGatGaGparticula
rGpointGinG
time?G
A)GbalanceGsheetG
B)GincomeGstatementG
C)GstatementGofGretainedGearningsG
D)GstatementGofGcashGflowsG
G
Answer:GGAG
Difficulty:G1GEasyG
Topic:GGBalanceGsheetG
Bloom's:GGUnderstandG
AACSB:GGReflectiveGThinkingG
Accessibility:GGKeyboardGNavigationG
LearningGGoal:GG02-
01GRecallGtheGmajorGfinancialGstatementsGthatGfirmsGmustGprepareGandG
provide.G
G
2)GWhichGfinancialGstatementGshowsGtheGtotalGrevenuesGthatGaGfirmGearnsGandGtheGtotalG
expensesGtheG
firmGincursGtoGgenerateGthoseGrevenuesGoverGaGspecificGperiodGofGtime–
generallyGoneGyear?G
A)GbalanceGsheetG
B)GincomeGstatementG
C)GstatementGofGretainedGearningsG
D)GstatementGofGcashGflowsG
G
Answer:GGBG
Difficulty:G1GEasyG
Topic:GGIncomeGstatementG
Bloom's:GGUnderstandG
AACSB:GGReflectiveGThinkingG
Accessibility:GGKeyboardGNavigationG
LearningGGoal:GG02-
01GRecallGtheGmajorGfinancialGstatementsGthatGfirmsGmustGprepareGandG
provide.G
G
G
G
,DOWNLOADGTHEGTestGBankGforGFinanceGApplicationsGandGTheoryG5thGEdition
GGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGCornett
mynursytest.store
2G
CopyrightG2020G©GMcGraw-
HillGEducation.GAllGrightsGreserved.GNoGreproductionGorGdistributionGwithoutGtheGpriorG
writtenGconsentGofGMcGraw-HillGEducation.G
3)GWhichGfinancialGstatementGreportsGtheGamountsGofGcashGthatGtheGfirmGgeneratedGandG
distributedG
duringGaGparticularGtimeGperiod?G
A)GbalanceGsheetG
B)GincomeGstatementG
C)GstatementGofGretainedGearningsG
D)GstatementGofGcashGflowsG
G
Answer:GGDG
Difficulty:G1GEasyG
Topic:GGStatementGofGcashGflowsG
Bloom's:GGUnderstandG
AACSB:GGReflectiveGThinkingG
Accessibility:GGKeyboardGNavigationG
LearningGGoal:GG02-
01GRecallGtheGmajorGfinancialGstatementsGthatGfirmsGmustGprepareGandG
provide.G
G
4)GWhichGfinancialGstatementGreconcilesGnetGincomeGearnedGduringGaGgivenGperiodGandGa
nyGcashG
dividendsGpaidGwithinGthatGperiodGusingGtheGchangeGinGretainedGearningsGbetweenGtheGb
eginningG
andGendGofGtheGperiod?G
A)GbalanceGsheetG
B)GincomeGstatementG
C)GstatementGofGretainedGearningsG
D)GstatementGofGcashGflowsG
G
Answer:GGCG
Difficulty:G1GEasyG
Topic:GGStatementGofGretainedGearningsG
Bloom's:GGUnderstandG
AACSB:GGReflectiveGThinkingG
Accessibility:GGKeyboardGNavigationG
LearningGGoal:GG02-
01GRecallGtheGmajorGfinancialGstatementsGthatGfirmsGmustGprepareGandG
provide.G
G
,G
G
DOWNLOADGTHEGTestGBankGforGFinanceGApplicationsGandGTheoryG5thGEdition
GGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGCornett
mynursytest.store
3G
CopyrightG2020G©GMcGraw-
HillGEducation.GAllGrightsGreserved.GNoGreproductionGorGdistributionGwithoutGtheGpriorG
writtenGconsentGofGMcGraw-HillGEducation.G
5)GOnGwhichGofGtheGfourGmajorGfinancialGstatementsGwouldGyouGfindGtheGcommonGstockG
andGpaid-inG
surplus?G
A)GbalanceGsheetG
B)GincomeGstatementG
C)GstatementGofGcashGflowsG
D)GstatementGofGretainedGearningsG
G
Answer:GGAG
Difficulty:G1GEasyG
Topic:GGBalanceGsheetG
Bloom's:GGUnderstandG
AACSB:GGReflectiveGThinkingG
Accessibility:GGKeyboardGNavigationG
LearningGGoal:GG02-
01GRecallGtheGmajorGfinancialGstatementsGthatGfirmsGmustGprepareGandG
provide.G
G
6)GOnGwhichGofGtheGfourGmajorGfinancialGstatementsGwouldGyouGfindGtheGincreaseGinGinve
ntory?G
A)GbalanceGsheetG
B)GincomeGstatementG
C)GstatementGofGcashGflowsG
D)GstatementGofGretainedGearningsG
G
Answer:GGCG
Difficulty:G1GEasyG
Topic:GGStatementGofGcashGflowsG
Bloom's:GGUnderstandG
AACSB:GGReflectiveGThinkingG
Accessibility:GGKeyboardGNavigationG
LearningGGoal:GG02-
01GRecallGtheGmajorGfinancialGstatementsGthatGfirmsGmustGprepareGandG
provide.G
G
7)GOnGwhichGofGtheGfourGmajorGfinancialGstatementsGwouldGyouGfindGnetGplantGandGequip
ment?G
, A)GbalanceGsheetG
B)GincomeGstatementG
C)GstatementGofGcashGflowsG
D)GstatementGofGretainedGearningsG
G
Answer:GGAG
Difficulty:G1GEasyG
Topic:GGBalanceGsheetG
Bloom's:GGUnderstandG
AACSB:GGReflectiveGThinkingG
Accessibility:GGKeyboardGNavigationG
LearningGGoal:GG02-
01GRecallGtheGmajorGfinancialGstatementsGthatGfirmsGmustGprepareGandG
provide.G
G
DOWNLOADGTHEGTestGBankGforGFinanceGApplicationsGandGTheoryG5thGEdition
GGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGCornett
mynursytest.store
4G
CopyrightG2020G©GMcGraw-
HillGEducation.GAllGrightsGreserved.GNoGreproductionGorGdistributionGwithoutGtheGpriorG
writtenGconsentGofGMcGraw-HillGEducation.G
8)GFinancialGstatementsGofGpubliclyGtradedGfirmsGcanGbeGfoundGinGaGnumberGofGplaces.GW
hichGofGtheG
followingGisGNOTGanGoptionGforGfindingGpubliclyGtradedGfirms'GfinancialGstatements?G
A)GFacebookG
B)GaGfirm'sGwebsiteG
C)GSecuritiesGandGExchangeGCommission'sG(SEC)GwebsiteG
D)GwebsitesGsuchGasGfinance.yahoo.comG
G
Answer:GGAG
Difficulty:G1GEasyG
Topic:GGFinancialGstatementsG
Bloom's:GGRememberG
AACSB:GGReflectiveGThinkingG
Accessibility:GGKeyboardGNavigationG
LearningGGoal:GG02-
01GRecallGtheGmajorGfinancialGstatementsGthatGfirmsGmustGprepareGandG
provide.G
G
9)GWhichGofGtheGfollowingGchangesGareGtrueGofGtheGTaxGCutGandGJobsGActG(TCJA)GofG2017
?G
A)GBusinessesGareGallowedGtoGimmediatelyGdeductG100%GofGtheGcostGofGeligibleGproperty
GinGtheG
yearGitGisGplacedGintoGserviceGthroughG2022.G