173 test bank for financial accounting 10th edition by harrison

173 Test Bank for Financial Accounting 10th Edition by
Harrison

True - False Questions
The accounting equation shows the relationship among assets,
liabilities and net income.
1.

True

2.

False

Accounting is often called the language of business.
1.

True

2.

False

The balance sheet is also called the statement of financial
position.
1.

True

2.

False

The amount of cash received on the sale of the company's stock
in excess of par value is called retained earnings.
1.

True

2.

False

Another name for the continuity assumption is the goingconcern assumption.
1.

True

2.

False

Accounting is moving in the direction of reporting more and
more assets and liabilities at their fair values.
1.

True

2.

False

The Clarke Company had beginning retained earnings of $20,000,
net income of $5,000, and declared and paid dividends of
$1,000. Therefore, the ending retained earnings is $25,000.
1.

True

2.

False

The fundamental qualitative characteristics of accounting
information are relevance and reliability.
1.

True

2.

False

Habitat for Humanity does not use accounting information since
they are not concerned about making a profit.
1.

True

2.

False

The accounting equation must always be in balance.
1.

True

2.

False

The two main components of stockholders' equity are paid-in
capital and dividends.
1.

True

2.

False

The statement of cash flows measures operating performance.
1.

True

2.

False

The basic component of paid-in capital is common stock.
1.

True

2.

False

The SEC establishes international financial reporting standards.
1.

True


2.

False

The accounting process begins and ends with people making
decisions.
1.

True

2.

False

Accounting information is used by investors and lenders, but not
by regulatory bodies.
1.

True

2.

False

Accounting is an information system that measures business
activities.
1.

True

2.

False

Net income is the profit left over after subtracting expenses and
dividends from revenues and gains.
1.

True

2.

False

A balance sheet reports the company's financial position over a
period of time.
1.

True

2.

False

Generally accepted accounting principles, or GAAP, are the rules
and procedures established by the Securities and
Exchange Commission.
1.

True

2.

False

Every corporation must pay dividends every year.
1.

True


2.

False

Since we live in a global economy, all countries have adopted the
same accounting standards for business transactions.
1.

True

2.

False

Following U.S. GAAP, the carrying value of a building can be
increased to its fair value.
1.

True

2.

False

Expenses are decreases in retained earnings that result from
operations.
1.

True

2.

False

Bookkeeping is the mechanical part of accounting.
1.

True

2.

False

Revenues are cash distributions to the stockholders.
1.

True

2.

False

Stockholders' equity is the stockholders' interest in the assets of
the corporation.
1.

True

2.

False

Long-term debt is a liability that is payable beyond one year from

the date of the financial statements.
1.

True

2.

False


The word "payable" always signifies a liability.
1.

True

2.

False

The business records of a sole proprietorship should include the
proprietor's personal assets such as a house.
1.

True

2.

False

Accounting produces financial statements, which report

information about a business entity.
1.

True

2.

False

David Company has total assets of $500,000 and total liabilities
of $180,000. David Company's stockholders' equity must
therefore be $680,000.
1.

True

2.

False

The calculation of ending retained earnings considers beginning
retained earnings, current year net income or net loss, and
stockholders' equity.
1.

True

2.

False

Owners' equity is called stockholders' equity for a corporation.
1.

True

2.

False

The balance sheet is organized in terms of the organization's
operating, investing, and financing activities.
1.

True

2.

False



Multiple Choice Questions - Page 1
Which of the following statements is TRUE for a limited liability
company?
1.

A) Members have unlimited liability for the debts of the business.

2.

B) Members have limited liability for the debts of the business.

3.

C) Only the limited partners have limited liability for the debts of the business.

4.

D) The general partner has unlimited liability for the debts of the business.

Decision makers who use accounting information include:
1.

A) creditors.

2.

B) the Internal Revenue Service.

3.

C) the Securities and Exchange Commission.

4.

D) all of the above.

Federal income taxes are paid by ________ in a limited liability
company.

1.

A) the company

2.

B) limited partners only

3.

C) general partners only

4.

D) members

Which of the following statements is TRUE for a limited liability
partnership?
1.

A) The partnership pays no federal income taxes.

2.

B) Only the limited partners pay federal income taxes on their shares of the partnership's
profits.

3.

C) Only the general partner pays federal income taxes on his or her share of the

partnership's profits.

4.

D) Only the members pay federal income taxes on their shares of the partnership's
profits.


Characteristics of faithfully representative information do NOT
include:
1.

A) complete.

2.

B) neutral.

3.

C) accurate.

4.

D) relevant.

To be useful, accounting information must have the fundamental
qualitative characteristics of:
1.

A) comparability and relevance.

2.

B) relevance and faithful representation.

3.

C) materiality and understandability.

4.

D) faithful representation and timeliness.

Which of the following statements is TRUE for a limited liability
partnership?
1.

A) The partners all have limited liability for the debts of the partnership.

2.

B) The partners all have limited liability for the acts of the other partners.

3.

C) The general partner has unlimited liability for the debts of the partnership.

4.

D) The limited partners have unlimited liability for the debts of the partnership.

Owners of an LLC are called:
1.

A) partners.

2.

B) proprietors.

3.

C) members.

4.

D) stockholders.

Which of the following is a TRUE statement about the
characteristics of partnerships?
1.

A) Limited partners have mutual agency and unlimited liability for the partnership's
debts.

2.

B) General partners have mutual agency and limited liability for the partnership's debts.

3.

C) Net income and loss of the partnership "flows through" to the partners.


4.

D) The partnership agreement must be in writing.

Advantages of a corporation include:
1.

A) each stockholder can enter into agreements that legally bind all the stockholders.

2.

B) the double taxation of distributed profits.

3.

C) limited liability of the stockholders for the corporation's debts.

4.

D) each stockholder can conduct business in the name of the corporation.

The fair value of a plant asset is equal to:
1.

A) the amount the business could sell the asset for.

2.

B) the amount of cash paid plus the dollar value of noncash consideration given in
exchange for the plant asset at acquisition.

3.

C) the amount of cash paid plus the loan taken out to finance the purchase of the plant
asset.

4.

D) the amount a company can receive for the asset when sold in order to go out of
business.

A disadvantage of general partnerships is:
1.

A) double taxation of distributed profits.

2.

B) the partnership's assets are commingled with each partner's personal assets.

3.

C) state rules and regulations must be followed.

4.

D) each partner may conduct business in the name of the entity and make agreements
that legally bind all partners.

An important fact to consider when determining how to organize
a business is that:
1.

A) members of an LLC have unlimited liability and are taxed like members of a
partnership.

2.

B) for accounting purposes, a proprietorship is a distinct entity from the proprietor.

3.

C) the records of a partnership can include each partner's personal assets and debts.

4.

D) the proprietor and the proprietorship are separate legal entities.

Which statement is TRUE about partnerships?
1.

A) Legally, a partnership is separate from the partners.


2.

B) A partnership has one capital account.

3.

C) For accounting purposes, a partnership is separate from the partners.

4.

D) For accounting purposes, a partnership is not separate from the partners.

Which type of business organization transacts the most
business and is the largest in terms of assets, income, and
number of employees?
1.

A) Proprietorship

2.

B) Partnership

3.

C) Limited-liability company

4.

D) Corporation

Which of the following is a CORRECT statement about GAAP and
IFRS?
1.

A) IFRS prefers valuing assets at historical cost while GAAP prefers using fair value.

2.

B) IFRS is more "rules-based" than GAAP.

3.

C) The FASB and the IASB are working towards convergence of standards.

4.

D) The SEC will require all companies to use IFRS beginning in 2013.

The International Accounting Standards Board is responsible for
establishing:
1.

A) the code of professional conduct for accountants.

2.

B) the Securities and Exchange Commission.

3.

C) Generally Accepted Accounting Principles used in the United States.

4.

D) International Financial Reporting Standards.

Which of the following have unlimited liability for a company's
debts?
1.

A) owners of a corporation

2.

B) members of a limited liability company

3.

C) limited partners in a limited liability partnership

4.

D) general partner in a limited liability partnership


Accounting:
1.

A) measures business activities.

2.

B) processes data into reports and communicates the data to decision makers.

3.

C) is often called the language of business.

4.

D) is all of the above.

In 1960, Johnson Company purchased a building for $100,000. In
2013, a real estate professional says the building has a fair
value of $1,000,000. In 2013, a similar building down the
street recently sold for $900,000. What value is reported for
the building on the balance sheet at December 31, 2013?
1.

A) $100,000

2.

B) $550,000

3.

C) $900,000

4.

D) $1,000,000

Information must be sufficiently transparent so that it makes
sense to reasonably informed users of the financial
statements, such as creditors. This qualitative
characteristic of information is called:
1.

A) verifiability.

2.

B) faithful representative.

3.

C) relevant.

4.

D) understandability.

All of the following are true statements about the entity
assumption EXCEPT for:
1.

A) the entity assumption draws a sharp boundary around each entity.

2.

B) the transactions of the business cannot be combined with the transactions of the
owner.

3.

C) the entity assumption ensures that the business will continue indefinitely.

4.

D) under the entity assumption, the entity is any organization that stands apart as a
separate economic unit.


Which statement is FALSE?
1.

A) International Financial Reporting Standards are used by many countries in the world.

2.

B) U.S. Generally Accepted Accounting Principles are used by many countries in the
world.

3.

C) The Financial Accounting Standards Board is working with the International
Accounting Standards Board to develop similar accounting standards.

4.

D) For many years, U.S. Generally Accepted Accounting Principles were considered to
be the superior set of accounting standards in the world.

The entity assumption does NOT apply to a:
1.

A) proprietorship.

2.

B) limited liability partnership.

3.

C) limited-liability company.

4.

D) The entity assumption applies to all the above.

In order to compare the financial statements of Toyota
Corporation to the financial statements of General Motors,
it would be preferable to use _________.
1.

A) U.S. Generally Accepted Accounting Principles for General Motors and International
Financial Reporting Standards for Toyota.

2.

B) U.S. Generally Accepted Accounting Principles for both companies.

3.

C) International Financial Reporting Standards for both companies.

4.

D) U.S. Generally Accepted Accounting Principles for Toyota Corporation and
International Financial Reporting Standards for General Motors.

Enhancing qualitative characteristics of accounting information
do NOT include:
1.

A) comparability.

2.

B) verifiability.

3.

C) timeliness.

4.

D) materiality.

The ________ is elected by the stockholders and is responsible
for setting policy and appointing officers.
1.

A) board of directors

2.

B) chief executive officer (CEO)

3.

C) chief financial officer (CFO)

4.

D) advisory council

Which of the following statements is TRUE for a proprietorship?
1.

A) Legally, a proprietorship is separate from the proprietor.

2.

B) For accounting purposes, a proprietorship is separate from the proprietor.

3.

C) For accounting purposes, a proprietorship is not separate from the proprietor.

4.

D) A and B

The two types of accounting are:
1.

A) profit and nonprofit.

2.

B) financial and managerial.

3.

C) internal and external.

4.

D) bookkeeping and decision-oriented.

Shareholders of a corporation:
1.

A) have limited liability for the corporation's debts.

2.

B) have unlimited liability for the corporation's debts.

3.

C) have unlimited liability for the actions of other stockholders.

4.

D) receive dividends from the corporation without having to pay tax on the distribution.

Which of the following statements is FALSE?
1.

A) The Securities and Exchange Commission is investigating whether all U.S. public
companies should adopt International Financial Reporting Standards.

2.

B) The advantage of a uniform set of global accounting standards is that financial
statements from a U.S. company will be comparable to those of a foreign company.

3.

C) In the long run, a uniform set of global accounting standards will reduce the costs of
doing business globally.


4.

D) With a uniform set of global accounting standards, companies will have to produce

multiple versions of their financial statements.

The process of verifying accounting information in financial
statements is undertaken by:
1.

A) the Securities and Exchange Commission.

2.

B) internal auditors only.

3.

C) external auditors only.

4.

D) internal and external auditors.

A company uses LIFO to determine the cost of goods sold each
year. This inventory method always results in the lowest
possible net income. This is an example of:
1.

A) cost benefit constraint.

2.

B) materiality.

3.

C) verifiability.

4.

D) consistency.

Which of the following entities pays federal income taxes?
1.

A) limited liability partnership

2.

B) general partnership

3.

C) limited liability company

4.

D) corporation

138 Free Test Bank for Financial Accounting 10th Edition
by Harrison Multiple Choice Questions - Page 2
The accounting equation can be stated as:
1.

A) Assets + Stockholders' Equity = Liabilities.

2.

B) Assets -Liabilities = Stockholders' Equity.

3.

C) Assets = Liabilities - Stockholders' Equity.

4.

D) Assets - Stockholders' Equity + Liabilities = Zero.

Property, plant and equipment does NOT include:
1.

A) buildings.


2.

B) land.

3.

C) machinery.

4.

D) patent.

The stable monetary unit assumption:
1.

A) ensures that accounting records and statements are based on the most reliable data
available.

2.

B) holds that the entity will remain in operation for the foreseeable future.

3.

C) maintains that each organization or section of an organization stands apart from other
organizations and individuals.

4.

D) enables accountants to ignore the effect of inflation on the accounting records.

The principle stating that assets acquired by the business
should be recorded at their actual cost on the date of
purchase is the:
1.

A) historical cost principle.

2.

B) objectivity principle.

3.

C) reliability principle.

4.

D) stable dollar principle.

On January 1, 2015, total assets for Wininger Technologies were
$135,000; on December 31, 2015, total assets were
$155,000. On January 1, 2015, total liabilities were
$110,000; on December 31, 2015, total liabilities were
$115,000. What is the amount of the change and the
direction of the change in Wininger Technologies'
stockholders' equity for 2015?
1.

A) Decrease of $15,000

2.

B) Increase of $15,000

3.

C) Increase of $30,000

4.

D) Decrease of $30,000

Historical cost:
1.

A) is determined for each asset on a yearly basis.


2.

B) is equal to the amount of cash paid less the dollar value of all non-cash consideration
given in the exchange.

3.

C) is a verifiable measure that is relatively free from bias.

4.

D) is the amount that the business could sell the asset for.

Another way to state the accounting equation is:
1.

A) Assets = Liabilities + Paid-in Capital - Common Stock.

2.

B) Assets + Liabilities = Stockholders' Equity.

3.

C) Assets = Liabilities + Paid-in Capital + Retained Earnings.

4.

D) Assets = Liabilities - Paid-in Capital - Dividends.

Liabilities are:
1.

A) a form of paid-in capital.

2.

B) future economic benefits to which a company is entitled.

3.

C) debts payable to outsiders called creditors.

4.

D) the outflow of resources that decrease common stock.

All of the following are expenses EXCEPT for:
1.

A) Cost of Goods Sold.

2.

B) Depreciation Expense.

3.

C) Salary Expense.

4.

D) Dividends.

Census Company had the following accounts and balances at
the end of the year. What are total liabilities at the end of
the year?Cash $74,000; Accounts Payable $12,000;
Common Stock $21,000; Cost of Goods Sold $85,000;
Dividends Declared and Paid $12,000; Operating Expenses
$12,000; Accounts Receivable $50,000; Inventory $40,000;
Long-term Notes Payable $33,000; Revenues $90,000;
Salaries Payable $24,000
1.

A) $12,000.

2.

B) $45,000.

3.

C) $66,000.


4.

D) $69,000.

The owners' equity of any business is equal to:
1.

A) revenues minus expenses.

2.

B) assets minus liabilities.

3.

C) assets plus liabilities.

4.

D) paid-in capital plus assets.

The major types of transactions that affect retained earnings are:
1.

A) paid-in capital and common stock.

2.

B) assets and liabilities.

3.

C) revenues, expenses, and dividends.

4.

D) revenues and liabilities.

Which of the following must be added to beginning Retained
Earnings to compute ending Retained Earnings?
1.

A) Net income

2.

B) Expenses

3.

C) Dividends

4.

D) All of the above

Net income is computed as:
1.

A) revenues - expenses - dividends.

2.

B) revenues + expenses.

3.

C) revenues - expenses.

4.

D) revenues - expenses + dividends.

The assets of a company:
1.

A) must equal the liabilities of the company.

2.

B) include property, plant, and equipment and accounts payable.

3.

C) represent economic resources that are expected to produce a future benefit.

4.

D) include short-term investments and notes payable.


Expenses of a business include:
1.

A) sales and cash equivalents.

2.

B) common stock and rent expense.

3.

C) cost of goods sold and salaries expense.

4.

D) retained earnings and utilities expense.

At the end of the current accounting period, account balances
were as follows: Cash, $25,000; Accounts Receivable,
$40,000; Common Stock, $18,000; Retained Earnings,
$14,000. Liabilities for the period were:
1.

A) $13,000.

2.

B) $20,000.

3.

C) $27,000.

4.

D) $33,000.

The CEO of Clarkson Company owns a vacation home in Hawaii.
Clarkson Company owns a factory in Detroit where they
are headquartered. Which of these properties is
considered an asset(s) of the business?
1.

A) Only the vacation home in Hawaii

2.

B) Only the factory in Detroit

3.

C) Both the vacation home in Hawaii and the factory in Detroit

4.

D) Neither the vacation home in Hawaii nor the factory in Detroit

Revenues are:
1.

A) decreases in assets resulting from delivering goods or services to customers.

2.

B) increases in liabilities resulting from delivering goods or services to customers.

3.

C) increases in retained earnings resulting from delivering goods or services to
customers.

4.

D) decreases in retained earnings resulting from delivering goods or services to
customers.


Which of the following statements is TRUE?
1.

A) Dividends are expenses of a business.

2.

B) Dividends reduce retained earnings.

3.

C) Dividends increase retained earnings.

4.

D) Dividends reduce net income.

Verifiability means that the information:
1.

A) is timely and understandable.

2.

B) is understandable.

3.

C) must be capable of being checked for accuracy, completeness and reliability.

4.

D) is material and relevant.

Receivables are classified as:
1.

A) increases in earnings.

2.

B) decreases in earnings.

3.

C) liabilities.

4.

D) assets.

When total expenses exceed total revenues, the result is:
1.

A) a net profit.

2.

B) a net loss.

3.

C) a dividend.

4.

D) excess cash.

A construction company paid $80,000 cash for equipment used
in the business. At the time of purchase, the equipment
had a list price of $90,000. When the balance sheet was
prepared, the fair value of the equipment was $83,000. At
what amount should the equipment be reported on the
balance sheet of the company?
1.

A) $80,000

2.

B) $83,000

3.

C) $85,000


4.

D) $90,000

If a company prepares its financial statements three years after
the end of their accounting period, they have violated the
qualitative characteristic of:
1.

A) understandability.

2.

B) timeliness.

3.

C) verifiability.

4.

D) materiality.

Examples of liabilities include:
1.

A) accounts payable and dividends.

2.

B) accounts payable and common stock.

3.

C) investments and note payable.

4.

D) accounts payable and note payable.

Revenues were $150,000, expenses were $140,000, and cash
dividends declared and paid were $5,000. What was the net
income and the change in retained earnings for the
period?
1.

A) Net income was $10,000; the change in retained earnings was $10,000.

2.

B) Net income was $150,000; the change in retained earnings was $15,000.

3.

C) Net income was $10,000; the change in retained earnings was $5,000.

4.

D) Net income was $150,000; the change in retained earnings was $145,000.

Which of the following increases retained earnings?
1.

A) Net loss

2.

B) Net income

3.

C) Expenses

4.

D) Dividends

An entity's equity consists of two accounts, Amy Jones, Capital,
and Mindy Lenz, Capital. This indicates the entity is a:
1.

A) proprietorship.


2.

B) corporation.

3.

C) not-for-profit.

4.

D) partnership.

Net income:
1.

A) is calculated by subtracting total expenses and total dividends from total revenues.

2.

B) occurs when total revenues are less than total expenses.

3.

C) is often referred to as the "bottom line" on an income statement.

4.

D) decreases total stockholders' equity.

Golden Company had the following accounts and balances at the
end of the year. What are total assets at the end of the
year?Cash $74,000; Accounts Payable $12,000; Common
Stock $21,000; Cost of Goods Sold $85,000; Dividends
Declared and Paid $12,000; Operating Expenses $12,000;
Accounts Receivable $50,000; Inventory $40,000; Longterm Notes Payable $33,000; Revenues $90,000; Salaries
Payable $24,000
1.

A) $74,000

2.

B) $114,000

3.

C) $124,000

4.

D) $164,000

The accounting assumption that states that the business, rather
than its owners, is the reporting unit is the:
1.

A) entity assumption.

2.

B) going concern assumption.

3.

C) stable-monetary-unit assumption.

4.

D) historical cost assumption.

The relevant measure of the value of the assets of a company
that is going out of business is the:
1.

A) liquidating value.

2.

B) inflation-adjusted book value.


3.

C) historical cost.

4.

D) book value.

138 Free Test Bank for Financial Accounting 10th Edition
by Harrison Multiple Choice Questions - Page 3
The balance sheet is also known as the:
1.

A) statement of profit and loss.

2.

B) operating statement.

3.

C) assets statement.

4.

D) statement of financial position.

Which financial statement reports cash payments and cash
receipts over a period of time?
1.

A) statement of retained earnings

2.

B) income statement

3.

C) balance sheet

4.

D) statement of cash flows

Seidner Company had the following account balances at the end
of the first year of operations:Revenues $99,000; Cost of
Goods Sold $40,000; Salaries Expense $13,000; Dividends
Declared and Paid $12,000; Utilities Expense $11,000;
Advertising Expense $10,000; Short-term Investments
$20,000; Cash $30,000; Land $50,000; Common Stock
$50,000. What is the amount of net income or net loss for
the year?
1.

A) $25,000

2.

B) $35,000

3.

C) $65,000

4.

D) $75,000


Michael Company reports the following account balances at the
end of the first year of operations: Revenues $99,000; Cost
of Goods Sold $40,000; Salaries Expense $13,000;
Dividends Declared and Paid $12,000; Utilities Expense
$11,000; Advertising Expense $10,000; Short-term
Investments $20,000; Cash $30,000; Land $50,000;
Common Stock $50,000. What are total liabilities at the end
of the first year?
1.

A) $37,000

2.

B) $50,000

3.

C) $62,000

4.

D) $100,000

A net loss occurs when:
1.

A) not enough cash exists.

2.

B) total revenues exceed total expenses.

3.

C) total expenses and losses exceed total revenues and gains.

4.

D) total revenues and dividends exceed total expenses and losses.

When analyzing a company's income statement, a fact to
remember is that:
1.

A) cost of sales is another term for gross profit.

2.

B) operating expenses are the costs of everyday operations such as selling expenses.

3.

C) companies are not allowed to offset items such as interest income and interest
expense against each other.

4.

D) net sales is equal to sales revenue less cost of goods sold.

Which financial statement is dated at the moment in time when
the accounting period ends?
1.

A) Balance sheet

2.

B) Income statement

3.

C) Statement of retained earnings and income statement

4.

D) Statement of cash flows


The portion of net income that the company has kept over a
period of years and not used for dividends is called:
1.

A) common stock.

2.

B) retained earnings.

3.

C) revenue.

4.

D) gross profit.

Lorna Company has the following account balances at the end of
the first year of operations:Accounts Payable $37,000;
Revenues $99,000; Cost of Goods Sold $40,000; Salaries
Expense $13,000; Dividends Declared and Paid $12,000;
Utilities; Expense $11,000; Advertising Expense $10,000;
Short-term Investments $20,000; Cash $30,000; Land
$50,000; Common Stock $50,000. What is the ending
balance in Retained Earnings?

1.

A) $13,000

2.

B) $23,000

3.

C) $25,000

4.

D) $53,000

The income statement:
1.

A) is not dated.

2.

B) must cover only a month in time.

3.

C) covers a defined period of time.

4.

D) reports the results of operations since the inception of the business.

What is an accounts payable?
1.

A) It is a liability for goods or services purchased on credit and supported by a written
agreement.

2.

B) It is a liability for goods or services purchased on credit and supported by the credit
standing of the purchaser.

3.

C) It is an amount of money to be received from a supplier.

4.

D) It is an asset arising from the sale of goods or services on credit.


The net income shown on the income statement also appears on
the:
1.

A) balance sheet and operations statement.

2.

B) statement of retained earnings.

3.

C) statement of cash flows, using the indirect method.

4.

D) B and C.

If an investor wants to know a company's cash balance at the
end of the year, this balance is reported on the:
1.

A) balance sheet.

2.

B) statement of cash flows.

3.

C) income statement.

4.

D) A and B.

The CORRECT data flow from one financial statement to the next

is:
1.

A) statement of retained earnings, income statement, balance sheet, statement of cash
flows.

2.

B) balance sheet, statement of retained earnings, income statement, statement of cash
flows.

3.

C) statement of retained earnings, income statement, statement of cash flows, balance
sheet.

4.

D) income statement, statement of retained earnings, balance sheet, statement of cash
flows.

Which is the CORRECT order for items to appear on the income
statement?
1.

A) Revenues, operating expenses, net income

2.

B) Cost of goods sold, revenues, net income

3.

C) Revenues, net income, operating expenses

4.

D) Interest expense, revenues, operating income