Income Statement Practice Problems With Answers

Income statement practice quiz print pdf.

Income statement practice problems with answers. Most accounting students will be given income statement problems to see how well they can analyze numbers and their ability to solve the problem. For multiple choice and true false questions simply press or click on what you think is the correct answer. Choose your answers to the questions and click next to see the next set of questions. Preparation of balance sheet horizontal and vertical style.

Inventory on 31 st december 2015 was valued at rs. At the end of its first year of operations a company has total assets of 1 200 000 total current liabilities of 500 000 total long term liabilities of 350 000 and paid cash dividends of 45 000. Green as at 31 march 2015. Unexpired insurance at the end financial year was rs.

The solution answers 40 multiple choice questions related to balance sheet income statement perpetual invenotyr system periodic inventory system bank reconciliation etc. Green as at 31 march 2015 in both horizontal and vertical style. Browse through all study tools. Preparing the income statement chapter exam instructions.

For fill in the blank questions press or click on the blank space provided. The income statement format above is a basic one what is known as a single step income statement meaning just one category of income and one category of expenses and prepared specifically for a service business. Income statement questions and answers test your understanding with practice problems and step by step solutions. If you have difficulty answering the following questions learn more about this topic by reading our income statement.

2 19 add solution to cart remove from cart. Examples of service businesses are medical accounting or legal practices or a business that provides services such as plumbing cleaning consulting design etc. Prepare balance sheet for f. Unfortunately if the income statement is several pages long it can be confusing at times even to those who are good with numbers.

The following trial balance is prepared after preparation of income statement for f. In the absence of information about the date of repayment of a liability then it may be assumed. Given data xyz corporation for period january 1 2006 to december 31 2006 beginning.