Topic 1 Financial Reporting Flashcards
1
Q
What is the IFRS?
A
a set of accounting rules used by public companies
2
Q
What are the 3 main primary statements?
A
- Balance sheets
- Income statements
- Cash flow statements
3
Q
What is a balance sheet?
A
A balance sheet shows a company’s financial position at a moment in time
4
Q
What is an income statement?
A
An income statement shows the performance of a firm at a given period of time
5
Q
What is a cash flow statement?
A
A cash flow statement shows a firms inflows and outflows during a period of time
6
Q
What are the enhancing qualitative characteristics of a financial statement?
A
1.comparability
2.understandability
3.timeliness
4.verifiability
7
Q
What does an income statement show?
A
The revenue and expenses of a firm over a period of time
