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Question 1.A company's ending accounts receivable balance and the period's advertising expense would be found on which financial statements, respectively?
balance sheet and statement of owner's equity (No. Accounts receivable will be on the balance sheet and the advertising expenses on the income statement)balance sheet and income statement (Yes. Accounts receivable will be on the balance sheet and the advertising expenses on the income statement)income statement and balance sheet (No. Accounts receivable will be on the balance sheet and the advertising expenses on the income statement)income statement and statement of owner's equity (No. Accounts receivable will be on the balance sheet and the advertising expenses on the income statement)
Question 2.How does financial accounting differ from managerial accounting?
financial accounting deals with internal reporting and managerial deals with internal reporting (No. Managerial accounting deals with internal reporting and financial accounting deals with external entities)there is no difference between the two types of accounting (No. Managerial accounting deals with internal reporting and financial accounting deals with external entities)managerial accounting deals with internal reporting and financial deals with external reporting (Yes. Managerial accounting deals with internal reporting and financial accounting deals with external entities) financial accounting is known for its "anything goes" philosophy where managerial accounting is known for its heavy regulations (No. Managerial accounting deals with internal reporting and financial accounting deals with external entities)
Question 3.What calculation would you use to determine the net income?
Revenues minus expenses equal net income. (Yes. Net Income = revenues - expenses)Beginning owner's equity plus net income and owner investments, minus withdrawals equal net income. (No. Net Income = revenues - expenses)Revenues plus liabilities minus owner's equity equal net income.(No. Net Income = revenues - expenses)Revenues plus liabilities minus expenses equal net income.
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