1000: Financial Statements

Question 1

financial statements summarise _

Answer 1

economic transactions

Question 2

What are the three financial statements we look at are?

Answer 2

statements of financial position, statement of profit and loss, statement of changes in equity

Question 3

the statement of profit and loss is also called _

Answer 3

income statement or the statement of financial performance

Question 4

the statement of profit and loss shows the businesses _ and _

Answer 4

income and expenses

Question 5

What is the statement of financial position more commonly referred to as?

Answer 5

Balance sheet

Question 6

What three components does the balance sheet display?

Answer 6

assets, liabilities and equities

Question 7

Which of the two balance sheet formats do we use in Australia?

Answer 7

The narrative format (not account format)- shows information vertically

Question 8

What is the difference between the current and non-current assets on the balance sheet?

Answer 8

current as consumed or converted to cash within 12 months : non-current> 12 months

Question 9

What is the difference between the current and non-current liabilities on the balance sheet?

Answer 9

Current liabilities are expected to be settled within 12 months : non-current> 12 months

Question 10

the statement of changes in equity reports what three components of equity:

Answer 10

The opening balance, the movement, and the closing balance