Financial Statements Flashcards
1
Q
Statement of Profit and Loss
A
Income - Expenses = Profit
2
Q
Statement of Financial Position
A
Assets - Liabilities = Capital
3
Q
Assets
A
what a business owns and is owed
4
Q
Liabilities
A
what a business owes to others
5
Q
Capital
A
the owner’s investment and profits
6
Q
Stock/Inventory
A
goods held by a business
7
Q
Creditor/Trade Payable
A
a supplier you owe money to
8
Q
Debtor/Trade Receivable
A
a customer who owes you money
9
Q
Profit & Loss Account/ Statement of Profit or Loss
A
financial statement calculating profit/loss made by a business
10
Q
Balance Sheet/Statement of Financial Position
A
financial statement showing the value of the owner’s investment
