Financial Statements

Question 1

What are the 3 primary financial statements?

Answer 1

Balance sheet, income statement, and cash flows

Question 2

What is the balance sheet?

Answer 2

Resources and claims on those resources at a specific point in time, the financial accounting cycle

Question 3

What is the Income Statement?

Answer 3

One measure of a company’s performance, Measures a company’s economic performance for a specific period of time, typically quarterly or annually

Question 4

Revenue

Answer 4

increases in a company’s net assets as a result of what the company does

Question 5

Expenses

Answer 5

decreases in a company’s assets as a result of what the company does

Question 6

Net income

Answer 6

Revenue - expenses

Question 7

The Statement of Cash Flows

Answer 7

Another measure of a company’s performance, measures how cash changed from the beginning to the end of the period and why it changed, typically quarterly or annually for same time as Income Statement

Question 8

Operations

Answer 8

the “product” of the company

Question 9

Investing

Answer 9

typically property

Question 10

Financing

Answer 10

borrow money

Question 11

Statement of Retained Earnings

Answer 11

Shows the accumulated profits or losses of a business since the business started, links income statement and balance sheet together