AGBE 3430 Exam 3 Questions & Answers 2024/2025
Financial statement(s) include
a. Sales reports
b. Invoices
c. Balance sheets
d. None of the above - ANSWERSBalance sheet
The components of an income statement are
a. Revenues
b. Expenses
c. Cost of goods sold
d. All of the above - AN...
d. None of the above - ANSWERSAssets = liabilities + owner's equity
The net income formula emphasized in the income statement is
a. Net operating income = gross sales - discounts
b. Net operating income = gross sales - discounts - cost of goods sold
c. Net operating income = net sales - cost of goods sold - operating expenses
d. None of the above - ANSWERSNet operating income = net sales - cost of goods sold - operating
expenses
, If service revenue is included i net sales for a firm, net sales - cost of goods sold would be
a. Gross profit
b. Net Operating Income
c. Gross margin
d. None of the above - ANSWERSGross profit
Financial statements prepared for a future period are called
a. Hypothetical statements
b. Estimated statements
c. Pro form statements
d. None of the above - ANSWERSPro forma statements
An example of a current asset would be
a. Accounts payable
b. Accounts receivable
c. Buildings and equipment
d. None of the above - ANSWERSAccounts receivable
When a firm purchases a truck, with depreciation taken on the truck and reported on the income
statement for that year and succeeding years, the amount paid for the truck purchase at the time of
purchase is known as (an)
a. Expense
b. Administrative
c. General
d. None of the above - ANSWERSExpenditure
Depreciation would be an example of a(n) __________ expense
a. Marketing
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