Financial Statements Review

Front

The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:

Back

Income Statement

Front

The income statement can be expressed as an equation: Options: Income = Income - Expenses, Revenue - Expenses = Net Income (Loss), Revenue + Expenses = Income/Loss, Expenses = Net Income + Revenue

Back

Revenue - Expenses = Net Income (Loss)

Front

What are examples that may include salaries, utilities, rent, insurance, and office supplies?

Back

Expense

Front

This document communicates what the entity owns in terms of assets, what it owes in the terms of liabilities, and the difference between those two which represents what the owners of the company are entitled to.

Back

Balance Sheet

Front

What a company owes to creditors: Assets, Liabilitites, Equity

Back

Liabilitites

Front

"Assets = Liabilities + Equity" can be displayed on which financial statement?

Back

Balance Sheet

Front

What are assets?

Back

What a company owns; anything of value owned by a business.

Front

What are liabilities?

Back

What a company owes.

Front

What is owner's equity?

Back

The value of the business after liabilities are subtracted from assets; the value of the owner's investment in the business.

Front

Every financial statement has a heading that indicates the name of the company, title of the report, and the date.

Back

True