Financial Statements and Concepts

Front

What is the Balance Sheet also known as?

Back

Statement of Financial Position

Front

What does the Statement of Changes in Equity represent?

Back

Changes in the equity of a company over a specific period.

Front

What is the purpose of the Statement of Cash Flows?

Back

To provide information about the cash inflows and outflows of a company.

Front

How is Profit/Loss calculated?

Back

Profit/Loss = Income - Expense

Front

What indicates a Profit?

Back

Income > Expense

Front

What indicates a Loss?

Back

Income < Expense

Front

What is considered Income?

Back

Revenue generated from business activities.

Front

What is considered an Expense?

Back

Costs incurred in the process of earning revenue.

Front

What are Purchases in accounting?

Back

Acquisition of goods or services.

Front

What is Cost of Goods Sold (COGS)?

Back

Direct costs attributable to the production of the goods sold by a company.