Lesson 2

Question 1

This finding report provides information regarding the liquidity position and capital structure of a company as of a given date

Answer 1

Statement of financial position

Question 2

Refers to the ability of a company to pay maturing obligations

Answer 2

Liquidity

Question 3

Refers to the conviction of debt and equity used by a company in financing its assets

Answer 3

Capital structure

Question 4

Other term for statement of profit or lose

Answer 4

Income statement

Question 5

Provides information regarding the revenues or sales, expenses, and net income of a company over a given accounting period

Answer 5

Statement of profit or loss/ income statement

Question 6

Explains the change in the cash balance from one accounting period to another

Answer 6

Statement of cash flow/ cash flow statement

Question 7

It is a very important financial statement because it provides information regarding the quality of a company’s earnings as down in the cash flows from operating activities

Answer 7

Statement of cash flows

Question 8

What kind of financial statement shows the operating performance of a company?

Answer 8

Statement of profit or loss

Question 9

Integral part of the financial statement

Answer 9

Notes to financial statement