Intro to Financial Statements

Liabilities that are due within a year

• Long term liabilities
• Current liabilities

Liabilities owed for more than a year

• Current liabilities
• Long term liabilities

A financial statement that shows changes in a corporation's ownership for a fiscal period

• Balance sheet
• Statement of stockholder's equity

A financial statement which shows how a business incurs its revenue and expenses; and also shows a net income or net loss

• Income Statement
• Balance Sheet

A financial statement which provides information on a company's assets, liabilities, and owner's equity for a specific date

• Balance sheet
• Income statement

Total sales less sales discount and sales returns and allowances

• Net sales
• Gross sales

The primary financial statements prepared for a sole proprietorship are the income statement and the balance sheet.

• True
• False

What are accounts payable?

• Money that you owe but have not paid yet.
• Money that you have paid.
• An asset.
• The same as accounts receivable.

What is the definition of gross?

• Something that is disgusting
• An amount before any liabilities have been deducted.
• 144
• The assets

The balance sheet reports the final balances of the permanent accounts at the end of the fiscal period.

• True
• False