Chapter Quiz

1. With debits and credits, which category will increase with a credit?

expenses

inventory

revenues (Revenues will increase with a credit.)

dividends

2. No entry can appear in both the balance sheet and the ___.

statement of cash flows

profit and loss statement

income statement (The balance sheet and the income statement will never contain the same item.)

journal entry (Journal entries may be included in a balance sheet.)

3. Your boss wants you to create a report showing all of the company's accounts, along with their balances. Which financial document should you provide?

an income statement

a statement of cash flows

a trial balance (A trial balance sheet lists all accounts and their balances)

a profit and loss statement

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