Income Statement Questions With Answers

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Income statement questions with answers. 24x7 online chat support. Balance sheet while an income statement and balance sheet are both key financial statements for companies they are very different. Preparation of balance sheet horizontal and vertical style. Income statement question 1.

Prepare balance sheet for f. Interest income was 7 700. In the absence of information about the date of repayment of a liability then it may be assumed. Cash sales totaled 255 000.

For multiple choice and true false questions simply press or click on what you think is the correct answer. Jones company has provided the following information. Start studying income statement questions. Rent expense was 36 000.

If you want more practice with full accounting questions and answers you should get the official exercise book for this site volume 2 in the accounting basics series. Green as at 31 march 2015. Access the answers to hundreds of income statement questions that are explained in a way that s easy for you to understand. Green as at 31 march 2015 in both horizontal and vertical style.

Credit sales totaled 479 000. 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. Salaries expense was 49 000. Get help with your income statement homework.

For fill in the blank questions press or click on the blank space provided. Learn vocabulary terms and more with flashcards games and other study tools. Preparing the income statement chapter exam instructions. The following trial balance is prepared after preparation of income statement for f.

Interest expense was 19 900. Examples of service businesses are medical accounting or legal practices or a business that provides services such as plumbing cleaning consulting design etc. So the income statement shows total revenue and expenses for a specified period of time such as a fiscal year. Income statements are used to evaluate the overall performance of a company during a period such as a fiscal year.

If you have difficulty answering the following questions learn more about this topic by reading our income statement explanation. Workbook has 88 questions and exercises starting from the accounting equation and basic concepts to journal entries t accounts the trial balance financial statements the cash flow statement.