SECTION A (60 MARKS) 1. Which financial statement displays the revenues and expenses of a company for a perion of time? A. Income statement B. Cash flow statement C. Balance sheet D. Statement of stockholders' equity 2. What is the main purpose of financial accounting? A Organize financial information B. Provide useful, financial information to outsiders C Keep track of company expenses D. Minimize company taxes 3. Which of these is not included as a separate item in the basic accounting equation? . Aets it Revenue Liabilities D. Stockholders' equity 4. Which financial statement uses the expanded accounting equation? A. Income statement B. Cash flow statement C. Balance sheet D. Statement of stockholders' equity 5. The accrual basis of accounting records revenues when they are: A. Collected B. Earned C. Contracted D. Readily available for use 6. Asset accounts have what type of balance? A. General journal B. General ledger C. T-Account D. Ledger account 7. Asset accounts have what type of balance? A. Debit B. Credit C. Contra D. All of the above B. Which account is not a liability account? A. Accounts payable B. Accrued expenses C. Cash D. Notes payable