Financial statements

What are financial statements?

• Reports that summarise a company's financial transactions and performance over a specific period.

• The net balance of cash moving in and out of a business at a specific point in time.

• The total amount invested in the company by the owner(s) and shareholders.

Profit and loss statement is also known as:

The balance sheet is also called:

What is the alternative wording of the Cost of Goods Sold?

(a)  

Do you agree with this statement:

An income statement is a financial statement that summarises a business’s income and expenses during a given period of time. An income statement is also sometimes referred to as a profit and loss (P&L) statement.

• Yes

• No

What does an income statement show?

• 
  The financial performance of a business

• 
  A sales projection for a business

• The value of a business

What must be taken away from sales revenue to show the gross profit of a business?

• Expenses

• Expenses and cost of sales

• Cost of sales

Which of these would be considered to be a current asset by a business?

• Business premises

• Money owed by debtors

• Delivery vans

What is working equity?

• Money owed to a business by debtors

• Money that is tied up in investments or property

• 
  Money that a business can access immediately

What shows the overall worth of a business?

• 
  Its non-current assets

• Its net assets

• Its liabilities