How many classifications does a Capital Stock Account have O

How many classifications does a Capital Stock Account have?

One

Two

Three

Four

2 points   

QUESTION 3

The equity contributed by stockholders and equity earned through business profits represent the stockholders\' equity for a:

partnership firm.

sole proprietorship.

corporation.

none of these.

2 points   

QUESTION 4

Retained earnings are a part of a/an:

asset account.

permanent account.

stockholders\' equity account.

temporary account.

2 points   

QUESTION 5

How many sections does an Income Statement have?

Two

Three

Four

Five

2 points   

QUESTION 6

Net sales are related to the:

net income section.

gross profit on sales section.

revenue section.

cost of merchandise sold section.

2 points   

QUESTION 7

Sales discount and sales return and allowance are:

revenue accounts.

contra revenue accounts.

permanent accounts.

contra expenses accounts.

2 points   

QUESTION 8

The total cost related to merchandise purchases during an accounting period is the:

net purchase.

cost of merchandise sold.

cost of merchandise available for sale.

beginning merchandise inventory.

2 points   

QUESTION 9

The gross profit on sale is $65,000, and operating expenses is $35,000. What will be the operating profit?

$65,000

$35,000

$100,000

$30,000

2 points   

QUESTION 10

A balance sheet has the following sections:

Assets, liabilities, and stockholders\' equity.

Income, expenses, and stockholders\' equity.

Assets, liabilities, and income.

Operating income, operating expenses, and stockholders\' equity.

2 points   

QUESTION 11

A cash flow statement is used to assess the:

net increase or decrease of cash.

net increases of cash only.

net decrease of cash only.

net profit or loss of business.

		One
		Two
		Three
		Four

Solution

Q2. Answer is Two. Q3. Answer is Corporation Q4. Answer is Stockholder\'s equity account Q5. Answer is Five Q6. Answer is Revenue section Q7. Answer is Contra revenue account Q8. Answer is Net Purchase Q9. Answer is $ 30000 (i.e. 65000-35000) Q10. Answer is Assets, liabilities and Stockholder\'s equity Q11. Answer is Net increase or decrease of cash