HOMEWORD LECTURE 2

Name: Nguyen Thi Thu Loan

Class: GBD0801
ID Student: GBD18729

15. Which of the following names is NOT associated with the income statement?
a. Profit & Loss Statement
b. Statement Of Financial Position
c. Statement Of Operations
16. Amounts earned by a company in its main operating activities are
a. Revenues
b. Gains
17. On December 1 a company borrowed $100,000 at 12% per year. The interest will be paid
quarterly, with the first payment due on March 1. What should the company report on its income
statement for December?
a. Nothing
b. Interest Expense Of $1,000
18. Is a retailer's Interest Expense an operating expense or a non-operating expense?
a. Operating Expense
b. Non-operating Expense
19. The income statement line gross profit will appear on which income statement format?
a. Single-step
b. Multiple-step
20. The income statement format that segregates the operating revenues and expenses from the
non-operating revenues and expenses is the
a. Single-step
b. Multiple-step
21. Interest earned on investments would appear in which section of a retailer's multiple step
income statement?
a. Non-operating
b. Operating
c. Would Not Appear
22. Net Sales minus the Cost of Goods Sold equals
a. Gross Profit
b. Income from Operation
c. Net Income
23. The combination of Selling Expenses and Administrative Expenses is referred to as
a. General Expenses
b. Operating Expenses
c. Total Expenses
24. Gross Profit minus Operating Expenses is best defined as
a. Net Income
b. Net Sales
c. Operating Income
25. Are the notes to the financial statements considered to be an integral part of the financial
statements?
a. Yes
b. No
II Exercises:
Assets: A, D, G, I, M, O
Liability: B, E, F, H, J, K, L, N, P
Neither an asset nor a liability: c