Accounts Flashcards
1
Q
What is a profit and loss statement
A
They show a period of time:
- Revenue
- Costs
- dividends/losses
2
Q
What is a balance sheet
A
They show a point in time, listing:
- Assets
- Liabilities
- Shareholder equity
3
Q
What is a cashflow
A
It shows a prediction of money in/outflows within a firm
4
Q
What info do balance sheets give about a firm
A
Shows how well a company is able to pay off its debt
5
Q
What info do profit and loss statements give about a firm
A
Shows the profitability of a company
6
Q
What’s the difference between Gross and Net?
A
Gross is the total amount of something
Net is the value after adjustments (deductions or additions)
