Accounting Statements

To show how successfully your business performed during a period, you would report its revenues and expenses in the

• balance sheet.     

• statement of cash flows

• income statement

• retained earnings statement

These are resources managed and controlled by the entity as a result of past transactions or events.

• assets    

• . liabilities

• equity    

• revenue

.Which of the following financial statements reflect the operating performance of the company?

• income statement

• statement of changes in equity       

• balance sheet

• cash flow statement

The primary purpose of the statement of cash flows is to

• provides information about the investing and financing activities during a period.

• prove that revenues exceed expenses if there is a net income.

• provides information about the cash receipts and cash payments during a period.

• facilitate banking relationships.

What is the Accounting Equation?

Activities that are directly related to the main revenue-producing activities of the company

• Operating

• Investing

• Financing

Cash transactions related to changes in equity and borrowings

• Operating

• Investing

• Financing

Statement provides an analysis of inflows and/or outflows of cash from/to operating, investing, and financing activities

What is the formula in getting the Net Income?