Accounting Chapter 15

Question 1

Data needed to prepare the liabilities section of a balance sheet are obtained from a worksheet

Accepted Answer

true

Question 2

A value assigned to a share of stock and printed on the stock certificate.

Accepted Answer

par value

Question 3

Revenue less cost of merchandise sold equals net income.

Accepted Answer

false

Question 4

A report prepared to give details about an item on a principal financial statement.

Accepted Answer

supporting schedule

Question 5

The revenue remaining after cost of merchandise sold has been deducted.

Accepted Answer

gross profit on sales

Question 6

An income statement is used to report a business's financial progress.

Accepted Answer

true

Question 7

Total sales less sales discount and sales returns and allowances.

Accepted Answer

Net sales

Question 8

Cost of merchandise sold is also known as cost of goods sold.

Accepted Answer

true

Question 9

The original price of all merchandise sold during a fiscal period.

Accepted Answer

cost of merchandise sold

Question 10

The relationship between the market value per share and earnings per share of a stock.

Accepted Answer

price earnings ratio

Question 11

Liabilities due within a short time, usually within a year.

Accepted Answer

current liabilities

Question 12

Liabilities owed for more than a year.

Accepted Answer

long term liabilities

Question 13

The amount of net income after federal income tax belonging to a single share of stock.

Accepted Answer

earnings per share

Question 14

Net income is shown on the last line of a statement of stockholders' equity.

Accepted Answer

false

Question 15

A financial statement that shows changes in a corporation's ownership for a fiscal period.

Accepted Answer

statement of stockholder's equity

Questions 15