Financial Statements

Question 1

Are a collection of summary-lever reports about an organization’s financial results, financial position, and cash flows.

Answer 1

Financial statements

Question 2

Are Prepared for a wide range of users, including investors, creditors, and other stakeholders.
-are intended to provide a comprehensive overview of the financial performance and position of an entity.
-Must comply with all applicable accounting standrads, and they are typically prepared on a annual basis.

Answer 2

General Purpose Financial statements (GPFS)

Question 3

• are prepared for a specific purpose or for a limited group of users
  -may be prepared for tax purposes, regulatory compliance, or for internal management purposes
  -are not required to comply with all accounting standards, and they may be prepared on a more frequent basis than GPFS.

Answer 3

Special purpose financial statements (SPFS)

Question 4

What I own

Answer 4

Assets

Question 5

What I owe

Answer 5

Liabilities

Question 6

Residual

Answer 6

Equity

Question 7

Other term for statement of financial position?

Answer 7

The Balance sheet.

Question 8

Assets

Answer 8

Present economic resources controlled by the entity as a result of past events, the use of which is expected to provide future economic benefits.

Question 9

Current Assets

Answer 9

Assets are classified as current if it can be used or converted to cash within one year

Question 10

Money in the bank or money within the premises of the compy

Answer 10

Cash

Question 11

Asset that refers to the company’s right to collect payment from the customer because delivery of goods or services has been completed.

Answer 11

Accounts Receivable