Financial statements

Would you prefer a Savings Account with?

• A higher interest rate

• A lower interest rate

Which account is classified as an income?

• Cash

• cell phone bill

• credit card

• babysitting payment

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

Which account is classified as an Liability?

• Concert Tickets

• Bank Account

• Allowance

• Auto Loan

Would you prefer a Savings Account with?

• A higher interest rate

• A lower interest rate

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 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 difference between non-current assets and current assets?

• NCA provide benefits that are used within one financial period but CA provide benefits that last beyond one financial period

• NCA provide benefits that last beyond one financial period but CA provide benefits that are used within one financial period

• NCA are easily converted to cash but CA are not easily converted to cash easily

• NCA are not loans but CA are loans