Week 1 - The accounting entity and financial statements

Question 1

Income statement/statement of profit or loss

Answer 1

A flow statement

heading: statement of profit or loss for the period ended XX

Question 2

Statement of financial position/balance sheet

Answer 2

snapshot of financial position at the period ended

heading: statement of financial position as at XX

Question 3

Statement of cashflows

Answer 3

a flow statement

shows the flow of cash in and out of the business