Financial statement

What is the purpose of preparing the Statement of Financial Performance?

• inform stakeholders the profitability of business

• inform stakeholders the income and expenses of business

• inform stakeholders the nature of business

• inform stakeholders the size of business

What is the purpose of the Statement of Financial Position?

• inform stakeholders the assets and liabilities of business

• provides information on how resources are obtained and used and the claim by the owner on the net assets of the business at a point in time.

• provides information on how resources are obtained and used in the business at a point in time.

• inform stakeholders the owner's equity of business

What is the equation to calculate Gross profit?

• Sales revenue + Income - Expenses

• (Sales revenue - Sales returns) - Cost of sales

• (Sales revenue + Cost of sales) - Sales returns

• (Sales revenue + Sales returns) - Cost of sales

What are the steps to calculate Profit for the year?

• Gross profit + Income - Capital

• Gross profit + Income + Expenses

• Gross profit + Income - Expenses

• Gross profit - Income - Expenses

What is the accounting equation used in the Statement of Financial Position?

• Total assets = Total Income + Equity

• Total assets = Total Loan + Equity

• Total assets = Total liabilities + Equity

• Total assets = Total Liabilities - Equity

The costs incurred in the day-to-day operations of an organization.

• Bookeeper

• Profit

• Revenue

• Expenses

The total amount of money received from the sale of goods or services.

• Bookeeper

• Profit

• Revenue

• Expenses

The amount of money a firm spent to buy or produce the products it sold during the period to which the income statement applies.

• Statement of Financial Position

• Statement of the Comprehensive Income

• Statements of Cash Flow

• Cost of Goods Sold

Revenue and expense accounts are extended to

• retained earning statement

• balance sheet section

• income statement

• accounts payable section

How does net loss affect owner's equity?

• increases

• decreases

• no change

• indirectly