10 Questions
Which financial statement reports the basic accounting equation?
Balance Sheet
What type of cash flow activity is borrowing cash from a bank?
Financing Activity (FA) - Inflow (+)
Which account class does 'Accounts Payable' belong to and on which financial statement would it be reported?
Liability - Balance Sheet
What is the impact on the statement of cash flows when paying employees cash?
Operating Activity (OA) - Outflow (-)
Which financial statement reports the net income (loss)?
Income Statement
What is the impact of ABC Corp signing an agreement to purchase supplies next year on the accounting equation?
Liabilities and stockholders' equity increase
What is the amount of change in cash for the period according to Dolly Corp's statement of cash flows?
$25,000
What was the amount of total assets at the end of the period for ABC Corp?
$72,000
At the end of the prior year, ABC Corp’s assets totaled $500,000 and its liabilities totaled $350,000. During the year assets increased by $40,000 and its total liabilities increased by $30,000. What was stockholders’ equity at the end of the current year?
$210,000
What is the amount of Retained Earnings at the end of the year for Dolly Corp?
$126,000
Test your knowledge of accounting formulas and cash flow activities with this quiz. Exercise #1 requires you to write the formulas for basic accounting equations, ending stockholders equity, ending retained earnings, and net income (loss). In Exercise #2, you'll classify cash activities as operating activity (OA), investing activity (IA), or financing activity (FA) and determine the impact on the statement of cash flows.
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