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
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Bensuda. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.99. You're not tied to anything after your purchase.
