Search Header Logo
finance topic 2

finance topic 2

Assessment

Flashcard

Business

University

Practice Problem

Hard

Created by

Muhammad Kelvin

FREE Resource

Student preview

quiz-placeholder

91 questions

Show all answers

1.

FLASHCARD QUESTION

Front

What is the purpose of the Income Statement?

Back

It measures the results of a firm’s operation over a specific period, showing the firm’s profit or loss.

2.

FLASHCARD QUESTION

Front

What is the formula for calculating profits in the Income Statement?

Back

Sales − Expenses = Profits

3.

FLASHCARD QUESTION

Front

What are the three main types of financial statements?

Back

1. Income Statement 2. Balance Sheet 3. Statement of Cash Flow

4.

FLASHCARD QUESTION

Front

What does the Balance Sheet provide?

Back

A snapshot of a firm’s financial position at a particular date, including assets, liabilities, and owner-supplied capital.

5.

FLASHCARD QUESTION

Front

What is the accounting equation represented in the Balance Sheet?

Back

Assets (A) = Liabilities (L) + Owner’s Equity (E)

6.

FLASHCARD QUESTION

Front

What are current assets?

Back

Assets that are relatively liquid or expected to be converted into cash within 12 months, such as cash, accounts receivable, and inventory.

7.

FLASHCARD QUESTION

Front

What are fixed assets?

Back

Assets that will be used for more than one year, including machinery, equipment, buildings, and land.

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Google

Continue with Google

Email

Continue with Email

Classlink

Continue with Classlink

Clever

Continue with Clever

or continue with

Microsoft

Microsoft

Apple

Apple

Others

Others

Already have an account?