Finance and Accounts

Why do businesses create financial statement accounts?

• To calculate the gross profit the business had made over a period of time.

• To identify the market growth and market share of the products of a business.

• To inform internal and external stakeholders of the firm's financial performance and position.

• I don't know, you ask me.

Organizations create a financial statement account at the start of a new month or year.

• True

• False

Employers, shareholders are and suppliers, banks, governments are.

Why are the local community interested in the financial statements of a firm?

• To identify the potential growth and stability to invest in the company.

• The growth and expansion will lead to more job opportunities.

• To know if the firm will be able to produce a constant supply of service or product

• To determine the ethical values and objectives of the business.

Are competitors stakeholders?

• Yes

• No

What is the difference between an income statement and a balance sheet?

• The income statement is finding the profit gained over a period of time, while the balance sheet is finding whether any expense or income is not more than the other.

• They are the same.

• The balance sheet is finding the profit gained over a period of time, while the income statement is finding whether any expense or income is not more than the other.