Reference no: EM132513319

Question 1: How is the balance sheet linked to the other financial statements?

Group of answer choices

a. The amount of assets reported on the balance sheet is equal to net income.

b. There is no link between the balance sheet and other statements, as each contains different accounts and provides different information.

c Dividends decrease stockholders' equity on the statement of stockholders' equity, which ultimately decreases stockholders' equity on the balance sheet.

d Liabilities is added to total assets and reported on the balance sheet.

Question 2: Sawaddee Enterprises began the year with total assets of $450,000 and total liabilities of $230,000. If Sawaddee total liabilities increased by $31,000 and its stockholders' equity decreased by $9,000 during the year, what was the amount of its total assets at the end of the year?

Group of answer choices

a $428,000

b $198,000

c $472,000

d $242,000

Question 3: Which one of the following titles would appear in a multiple-step, but not a single-step income statement?

Group of answer choices

a. Cost of goods sold

b. Gross Profit or Gross Margin

c. Rent Expense

d. Net income