Accounting assignment

Name: Class: Date: Chapter 1 and 2 Indicate the answer choice that best completes the statement or answers the question. 1. The costs of doing business through the sale of goods and services are called a. Net income b. Expenses c. Revenues d. Dividends 2. In preparing financial statements, accountants should consider all of the following except: a. The objectives of financial reporting. b. The characteristics that make accounting information useful. c. The most useful way to display the information found on the financial statements. d. The presentation of the value of a company. 3. Which one of the following is an assumption made in the preparation of financial statements? a. Financial statements are prepared for a specific entity that is distinct from the entity owners. b. Financial statements are prepared assuming that inflation has a distinct effect on the monetary unit c. Preparation of financial statements for a specific time period assumes that the balance sheet covers a period of time. d. Market values are always assumed to be irrelevant when preparing financial statements. 4. Which one of the following items appears on a balance sheet? a. Accounts payable b. Sales revenue c. Utilities expense d. Cost of goods sold 5. Which of the following terms best describes a distribution of the net income of a business to its owners? a. Revenue b. Monetary unit c. Earnings d. Dividen 6. . Rosu Company has total current assets of $150,000 and total current liabilities of $50,000. What is the amount of working capital for Rosu Company? a. $200,000 b. $100,000 c. $125,000 d. $ 179,000 Page 1