1. Which of the following statements is correct? A. Assets on the balance sheet include retained earnings. B. Retained earnings include contributed capital. C. The balance sheet equation states that assets equal contributed capital. D. A corporation's net income does not necessarily equal its cash flow from operations. 2. A list of all accounts and the identification number assigned to each account used by a company is called a: A. Source document. B. Journal. C. Trial balance. D. Chart of accounts. E. General Journal. 3. Which financial statement would you utilize to determine whether a company will be able to pay liabilities which are due in 30 days?

1. Which of the following statements is correct? A. Assets on the balance sheet include retained earnings. B. Retained earnings include contributed capital. C. The balance sheet equation states that assets equal contributed capital. D. A corporation's net income does not necessarily equal its cash flow from operations. 2. A list of all accounts and the identification number assigned to each account used by a company is called a: A. Source document. B. Journal. C. Trial balance. D. Chart of accounts. E. General Journal. 3. Which financial statement would you utilize to determine whether a company will be able to pay liabilities which are due in 30 days?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 16CE: Cornerstone Exercise 1-16 Financial Statements Listed below are elements of the financial...

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