MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

9) 10) 11) 12) 13) The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the: A) Balance sheet. B) Statement of owner's equity. C) Statement of cash flows. D) Income statement. E) Statement of financial position. Equity is: A) Net income divided by average total assets. B) Equal to assets plus liabilities. C) The owner's claim on assets. D) Increased by expenses. E) Decreased by revenue. Outflows of cash and other assets to owners for personal use are called a(n): A) Liabilities. B) Withdrawals. C) Expenses. D) Contributions. E) Investments. When expenses exceed revenues, the result is called: A) Net assets. B) Negative equity. C) Net loss. D) Net income. E) A liability. Another name for equity is: A) Net income. B) Expenses. C) Net assets. D) Revenue. E) Net loss