1. Based on the presented information, Ford Motors is a __________ business.

   • profitable
   • unprofitable
   • unstable
   • highly leveraged

2. ______________ is the amount of sales to customers that an organization generates during the particular financial reporting period, reduced by any sales returns or other discounts.

   • Cost of goods
   • Losses
   • Assets
   • Revenue

3. Which of the following make up cost of goods sold or COGS?

   • direct labor
   • direct materials
   • manufacturing overhead
   • All of the above.

4. Cost of goods sold sales = ______________.

   • income
   • equity
   • gross profit
   • assets

5. Statement that shows revenues and expenses that are not reported on the traditional income statement

   • Balance sheet
   • Statement of comprehensive income
   • Statement of cash flows
   • equity before income statement

6. The income statement not only reflects normal and recurring operating expenses, but also the impact of a companys financing choices.

   • True
   • False

7. Revenues all expenses = ______________.

   • marketable securities
   • net income
   • capital expenditures
   • return on investment