QUIZ IN GROUP 1 REPORT

Which of the following is true about Financial Statements?

• A.) Financial Statement is only a Business Document that shows a company's Business Transactions.

• B.) Financial Statement is a statement that shows the company's position, performance, and progress over a period of time.

• Both A and B

• All of the above

Answer explanation

Letter A is incorrect because of the word "only". Therefore, Letters C and D are also incorrect.

It is one of the Components of a Financial Statement that shows the Assets, Liabilities, and Owners' Equity in a company.

Is a Financial Statement solely used to determine the a company's Business Transactions, records, and cash flows? Is it True or False?

Answer explanation

The main goal of a Financial Statement is not just to show the Business records, transactions, and cash flows but also to show the company's performance, credibility, and progress.

It is a collection of summary-level reports about an organization's financial results, financial position, and cash flows.

Financial Statements are used to determine the ability of a business to generate cash, and the sources and uses of that cash. Is it True or False?

Financial Statements are used as the basis for an annual report, which is distributed to a company’s investors and the investment community. Is it True or False?

Financial statements are important to investors because they can provide enormous information about a company's revenue, expenses, profitability, debt load, and the ability to meet its short-term and long-term financial obligations. Is it True or False?

It is one of the Components of Financial statements that lists a company's income, expenses and net income (or loss).

These statements are cash flow from the operating activities, cash flow from investing activities, and cash flow from finance activities.

Statement of Changes in Shareholders Equity is a financial statement that provides a summary of changes in the shareholder’s equity in a given period. Is it True or False?