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Federal Reserve Bank of Boston Economic Quiz

Balance Sheet 1. Which of the following is the definition of the Balance Sheet? Balance Sheet summarizes the amount of revenues earned and expenses incurred by a business over a period of time. shows only the changes in financial position caused by operations that produce a net income or loss. shows the financial position of a business on a certain date. shows the changes in the owner's capital account over a period of time. 2. In a period of rising prices, which of the following inventory method generally results in the lowest net income figure? Average-cost method First-in, first-out Last-in, first-out Cannot tell without more information 3. Which of following methods allocates the deprecations of a depreciable asset evenly over the estimated useful life of the asset? The straight-line method The production method The accelerated method The declining-balance method 4. Failure to record a liability will probably result in overstated net income. have no effect on net income. result in overstated total assets. result in overstated total liabilities and owner's equity. Created with QuizScript

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Economic quiz written by: Devrim Karaaslani - November 18, 2002 Views expressed in the economic quiz are those of the individual author.