MODULE 4 PART 3: The Financial Aspect (Financial Statement)

Question 1

(4) Financial Statements:

Answer 1

1. Income Statement
2. Statement of Owner’s Equity (Retained Earnings)
3. Balance Sheet (Statement of Financial Position)
4. Statement of Cash Flow

Question 2

Financial statement that shows a company’s revenues, expenses and net profit over a specific period of time.

Answer 2

• Income Statement

Question 3

Financial statement that shows the changes in owner’s equity during a specific period of time.

Answer 3

• Statement of Owner’s Equity

Question 4

This shows a company’s financial position at a specific point in time.

Answer 4

• Balance Sheet

Question 5

Shows how cash is generated from operating activities, investing activities, and financing activities over a specific period.

Answer 5

• Statement of Cash Flow

Question 6

(3) Sections of Cash Flow Statement:

Answer 6

1. Operating Activities (goods, services, revenue, expenses)
2. Investing Activities (purchasing or selling assets)
3. Financing Activities (debt and equity financing)