Multiple Choice: Accounting Reports Select the correct answer for each of the following:

1. The set of basic financial statements for a business entity does not include the:

a. Statement of financial position.

b. Statement of cash flows.

c. Statement of individual shareholder wealth.

d. Statement of changes in owners’ equity.

2. The income statement includes:

a. Contributions from owners.

b. Proceeds received from borrowing.

c. Information on profits distributed to shareholders.

d. Revenue generated from the sale of goods and services.

3. The statement of financial position (balance sheet) does not include:

a. Revenues.

b. Assets.

c. Equities.

d. Liabilities.

4. Assets reported by a corporation represent:

a. The claims of owners on the company.

b. Obligations and commitments to others.

c. Items having value to the company.

d. Resources expended during the current period.