Financial Statements Flashcards
1
Q
What is a income statement
A
An income statement is a statement prepared for a trading period to show the gross profit and the profit of the year
2
Q
What’s the difference between service business and trading business
A
A service business is one which provides a service and a trading business is one which buys and sells goods
3
Q
Define a statement of financial position
A
A statement of financial statement position is a statement of the assets and liabilities of a business on a certain date
4
Q
What is non current assets
A
Long term assets
5
Q
What is current assets
A
Short term assets
6
Q
What is current liabilities
A
Short term liabilities
7
Q
What is non current liabilities
A
Long term (not cure for repayment for a year)
For example long term loan and mortgage
