1. Hosted by
Ms. Appel

2. True/False 1
True/False 2
True/False 3
True/False 4
100
100
100
100
200
200
200
200
300
300
300
300
Final
400
400
400
400
500
500
500
500

3. Reporting financial information the same way from one fiscal
What is False?
Reporting financial information
the same way from one fiscal
period to the next is an
application of the accounting
concept Adequate Disclosure.
Row 1, Col 1

4. If a company has determined that the acceptable component
What is False?
If a company has determined
that the acceptable component
percentage for cost of merchandise
sold is not more and 51.1%,
the current year’s actual component
percentage of 48.9% is unacceptable.
Row 1, Col 2

5. A balance sheet reports the financial condition of a business
What is True?
A balance sheet reports the
financial condition of a business
on a specific date.
Row 1, Col 3

6. A separate financial statement may be prepared to show the
What is True
A separate financial statement
may be prepared to show the
distribution of net income or
loss to partners.
Row 1, Col 4

7. Most businesses correct an unacceptable component percentage
What is False?
Most businesses correct an
unacceptable component percentage
for gross profit by simply increasing
the markup on merchandise
purchased for sale because an
increased selling price will always
increase profit.
Row 2, Col 1

8. Increasing sales revenue while keeping cost of merchandise sold
What is True?
Increasing sales revenue while
keeping cost of merchandise sold
the same will increase gross
profit on sales.
Row 2, Col 2

9. For a merchandising business, every sales dollar reported on
What is False?
Daily Double
For a merchandising business,
every sales dollar reported on
the income statement includes
only three components: gross profit
on sales, total expenses,
and net income.
Row 2, Col 3

10. Total expenses on an income statement are deducted from
What is True
Total expenses on an income
statement are deducted from
the gross profit on sales to find
net income.
Row 2, Col 4

11. An income statement for a merchandising
What is True?
An income statement for a merchandising
business has tree main sections:
revenue, cost of merchandise sold,
and expense
Row 3, Col 1

12. An owners’ equity statement summarizes the changes in
What is True?
An owners’ equity statement
summarizes the changes in
owners’ equity during a
fiscal period.
Row 3, Col 2

13. When more detailed information about an item on a financial
What is True?
When more detailed information
about an item on a financial
statement is needed, a supporting
schedule may be prepared.
Row 3, Col 3

14. business is affected when a business earns an income or
What is True
The owners’ equity of a
business is affected when a
business earns an income or
incurs a loss
Daily Double
Row 3, Col 4

15. is used to report a business’s
What is True?
An income statement
is used to report a business’s
financial progress.
Row 4, Col 1

16. A distribution of net income statement summarizes how
What is False?
A distribution of net income
statement summarizes how
owners’ equity has changed
during a fiscal period.
Row 4, Col 2

17. Regardless of how earnings are shared, the steps in
What is True
Regardless of how earnings
are shared, the steps in
preparing a distribution of
net income statement are the same.
Row 4, Col 3

18. Gross profit must be less than total expenses in order to provide
What is False
Gross profit must be less than
total expenses in order to provide
for a desirable net income.
Row 4, Col 4

19. component percentages are calculated by dividing the
What is False?
On an income statement,
component percentages are
calculated by dividing the
amount of each component
by the amount of expenses.
Row 5, Col 1

20. on the last line of a distribution
What is True?
Net income is shown
on the last line of a distribution
of net income statement.
Row 5, Col 2

21. Revenue less cost of merchandise
What is False
Revenue less cost of merchandise
sold equals net income.
Row 5, Col 3

22. Beginning merchandise inventory less purchases made during
What is False
Beginning merchandise inventory
less purchases made during
the fiscal period plus ending
inventory equals cost of merchandise
sold.
Row 5, Col 4

23. List the sections under each owner on an Owners’ Equity Statement
Final Jeopardy
List the sections under each owner on an Owners’ Equity Statement
Capital at beginning of the fiscal period
Share of Net Income/Loss
Less Withdrawals
Net Increase/Decrease in Capital
Capital at the end of the fiscal period.