12.2 Financial Records

Financial statements are used to record and analyze the financial performance of a business.

• True

• False

name the buildings, and equipment owned by the business, their original and current value, and the amount owed if money was borrowed to purchase the assets.

• Asset Records

• Depreciation Records

• Inventory Records

• Cash Records

______identify the amount assets have decreased in value due to their age and use.

• Asset Records

• Depreciation Records

• Inventory Records

• Cash Records

______identify the type and number of products on hand for sale. Adequate records are crucial to correctly determine the number of products sold, damaged, or lost and the current value of that inventory.

• Asset Records

• Depreciation Records

• Inventory Records

• Cash Records

______identify all purchases and sales made using credit.

• Payroll Records

• Cash Records

• Tax Records

• Records of accounts

______list all cash received and spent by the business.

• Payroll Records

• Cash Records

• Tax Records

• Records of accounts

______identifies the companies from which credit purchases were made and the amount purchased, paid, and owed.

• Payroll Records

• Accounts Payable Records

• Tax Records

• Records of accounts

______identifies customers that made purchases using credit and the status of each account

• Payroll Records

• Accounts Payable Records

• Accounts Receivables Records

• Records of accounts

______contain information on all employees of the company, their compensation, and benefits.

• Payroll Records

• Accounts Payable Records

• Accounts Receivables Records

• Records of accounts

______show all taxes collected, owed and paid.

• Cash Records

• Accounts Payable Records

• Tax Records

• Asset records