18 which of the following is the correct order of preparation of financial statement 4307134

18 which of the following is the correct order of preparation of financial statement 4307134

18) Which of the following is the correct order of preparation of financial statements?

A) income statement → statement of owner's equity → balance sheet → statement of cash flows

B) statement of owner's equity → balance sheet → income statement → statement of cash flows

C) balance sheet → statement of owner's equity → income statement → statement of cash flows

D) balance sheet → income statement → statement of owner's equity → statement of cash flows

19) Which of the following amounts appears on both the income statement and statement of owner's equity?

A) ending capital

B) total revenues

C) net income

D) withdrawals

20) Which of the following amounts appears on both the statement of owner's equity and the balance sheet?

A) ending owner's equity

B) total assets

C) total revenues

D) net income

21) Which of the following will be categorized as an operating activity on the statement of cash flows?

A) cash received by selling old equipment

B) cash paid for purchase of new machinery

C) cash paid for purchase of raw materials

D) cash received from issue of shares

22) Which of the following will be categorized as a financing activity on the statement of cash flows?

A) cash received by selling old equipment

B) cash paid for purchase of new machinery

C) cash paid for purchase of raw materials

D) cash received from issue of shares

23) Which of the following will be categorized as an investing activity on the statement of cash flows?

A) depreciation expense on production equipment for the year

B) cash paid for purchase of new machinery

C) cash paid for purchase of raw materials

D) cash received from issue of shares

24) Which of the following financial statements shows the changes in owner's capital during a period of time?

A) income statement

B) statement of owner's equity

C) statement of cash flows

D) balance sheet

25) Which of the following financial statements lists the entity's assets, liabilities, and owner's equity as of a specific date?

A) balance sheet

B) statement of owner's equity

C) income statement

D) statement of cash flows

26) Which of the following is shown on the balance sheet as well as the statement of cash flows?

A) Owner's equity (ending balance)

B) Net income

C) Total assets

D) Cash (ending balance)

27) On May 1, 2015, Deborah Merchant started Deborah's Launderette by investing $20,000. On May 3, the business borrowed $5,000 from a creditor and executed a note payable with the principal and interest to be due in one year. On May 7, the business purchased $15,000 of equipment for cash. On May 8, Deborah's Launderette rendered service to its first client and earned $3,000 in cash. On May 12, Deborah incurred repair expense of $1,800 and promised to pay the repair contractor the following month. On May 18, Deborah rendered service to a new client in the amount of $8,000 on account, as the client promised to pay the following month. At the end of May, Deborah took a withdrawal of $1,500. Prepare an income statement for the month of May, a statement of owner's equity for the month of May, and a ba

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