Self Assessment Quizzes

CHAPTER 19: Section 3 The Statement of Retained Earnings, Balance Sheet, and Statement of Cash Flows

	1.	The account summarizing the accumulated profits of a corporation less any amounts paid to stockholders as a return on their investments is

		a.	retained earnings
		b.	dividends
		c.	net assets
		d.	capital stock

	2.	The comparison of the same items on financial statements for two or more accounting periods is called

		a.	vertical analysis
		b.	horizontal analysis
		c.	financial analysis
		d.	income analysis

	3.	Retained Earnings is

		a.	decreased by net income
		b.	decreased by Capital Stock
		c.	decreased by dividends
		d.	none of the above

	4.	A year or period that is used for comparison is called a

		a.	comparison year
		b.	first year
		c.	initial year
		d.	base year