Basic Financial Statements

It is a document that provides an overview of assets, liabilities, and shareholders’ equity for a particular period.

• Income Statement

• Balance Sheet

• Cash Flow

• Statement of Retained Earnings

What is a financial report that summarizes the revenues and expenses of a business?

• Income Statement

• Balance Sheet

• Cash Flow

• Statement of Retained Earnings

It shows how much of the profits an owner has left in the business to be available for reinvestment and growth.

• Income Statement

• Balance Sheet

• Cash Flow

• Statement of Retained Earnings

It is an accounting document that tracks the incoming and outgoing cash and cash equivalents from a business.

• Income Statement

• Balance Sheet

• Cash Flow

• Statement of Retained Earnings

Which of the following is not a use of financial statements?

• It helps assess the financial status and performance of a company.

• It is a source of information for stakeholders to make wise decisions.

• It essentially reflects the present financial status of a company.

• The companies use these statements for policy-making.