Financial Acumen

The financial statement that reports the revenue and expense for a period of time such as year or month:

• Balance sheet

• Income statement

• Statement of cash flow

The financial statement that reports asset liability and equity at a specific date:

• Balance sheet

• Income statement

• Statement of cash flow

Obligations are reported on the balance sheet are referred as:

• Asset

• Earnings

• Liability

Resources owned by a company within in one year are reported on the balance sheet as:

• Current asset

• Current liability

• Fixed asset

The Income statement is composed of the following two elements:

• Asset and liability

• Income and expense

• Equity and earnings

Purchase of a factory plant can be classified as a/an:

• Operating activity

• Investing activity

• Financial activity

Which of these will an income statement specify?

• A point in time

• A period of time

• A particular date

A company disposes off equipment that it no longer uses in its business. The amount received by the company is more than the amount the asset is carried at in the accounting records. The company will report a(n)

• Gain

• Loss

• Revenue

The amount of capital that remains in the business after its assets are used to pay off its outstanding liabilities is known as:

• Equity

• Gain

• Revenue

Net profit or loss is arrived by:

• Adding assets and liability

• Deducting expense from income

• Multiplying equity and income