Quiz 1.docx - Accounting 701 Quiz 1 1 The balance sheet contains the same major headings as appear in the accounting equation True 2 The equity ratio is

Quiz 1.docx - Accounting 701 Quiz 1 1 The balance sheet...

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Accounting 701 Quiz 1 1. The balance sheet contains the same major headings as appear in the accounting equation. 2. The equity ratio is the stockholders’ equity divided by total liabilities. 3. A single proprietorship (aka sole proprietorship) is an unincorporated business owned by an individual and often managed by that individual. 4. The income statement shows the profitability of the company and is dated as of a particular date, such as December 31, 2014. The income statement is dated using a period of time, such as “For the Year Ended December 31,2014”.5. Retained earnings represent undistributed net income. 6. Accounting rules in the United States are known as International Financial Reporting

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