Revenues are best described as; a. decreases in resource resulting from the purc

Question

Revenues are best described as; a. decreases in resource resulting from the purchase of goods for the provision of services. b. increases in resources resulting form the sale of goods or the provision of services. c. assets used or consumed in the sale of products or services. d. an increase in the financing activities section of the statement of cash flows. 2. which of the following best describes the term "expenses"? a. The cost of assets used in the investing activities of a business. b. The amount of interest or claim that the owners have in the business. c. The future economic resources of a business entity., d. A decrease in resources resulting from the sale of goods or provision of services, 3, which statement demonstrates the financial success or failure of the company over that specific period of time? a. Statement of changes in stockholders' equity b. Statement of retained earnings c. Balance sheet d. Income statement 4. The resources used to generate revenues during a period are called; a. net income. b. expenses. c. revenues, d. dividends. 5. "Matching principle" is best described as: a. the principle that a reverue should be recorded when a resource has been earned b. an increase in resources resulting from the sale of goods or the provision of services. c. the principle that expense should be recorded in the period resources are used to generate revenues. d. an increase in the financing activities, 6. which of the following terms best distribution of the net income of a corporation to its owners? a. Retained earnings b. Dividends c. Liquidation of assets d. Revenue Your are potential creditor and are concered that a particular company you are ready to give a loan to might have too much debt. which financial statement would provide you information needed in order to evaluate your concern?

Explanation / Answer

1. "Revenues" are best described as increases in resources resulting from the sale of goods or the provision of services. 2. A decrease in resources resulting from the sale of goods or provision of services is what best describes the term "Expenses". 3. Income Statement demonstrates the financial success or failure of the Company over that specific period of time. 4. The resources used to generate revenues during a period are called expenses. 5. "Matching principle" is best described as the principle that expenses should be recorded in the period resources are used to generate revenues. 6. "Dividends" best describes a distribution of the net income of a corporation to its owners. 7. The Balance Sheet would be the financial statement which would provide information needed in order to evaluate the concern of whether the Company to which the loan is to be given, might have too much debt.

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