Management and Financial Statements

What are the three key financial statements that managers should know how to read and analyze?

• Income statement, balance sheet, and cash flow statement

• Profit and loss statement, balance sheet, and cash flow statement

• Balance sheet, income statement, and budget statement

• Cash flow statement, profit and loss statement, and budget statement

Why is it important for managers to have a forward-thinking mindset when using financial statements to determine budgets?

• Historical data is not useful for budgeting

• Budgets should only be based on future projections

• Financial statements provide insights into future expenses

• Financial landscapes are constantly changing

Which financial statement provides a snapshot of a company's financial health at a specific point in time?

• Balance sheet

• Income statement

• Cash flow statement

• Statement of retained earnings

Which financial statement summarizes the revenue and expenses for a specific period of time?

• Balance sheet

• Income statement

• Cash flow statement

• Statement of retained earnings

What does the cash flow statement help us understand?

• The financial position of a company

• Whether a company is making or losing money

• How cash moves in and out of a company

• The impact of expenses on a company's net income

What does a balance sheet list?

•  Assets and liabilities

• Revenues and expenses

• Cash flow and net profit

• Gross margin and fixed costs

 How can financial statements help managers excel their business?

• Measure impact

• Determine budgets

• Cut unnecessary costs

• All of the above

Which Financial Statement helps us understand the financial position of a company, and whether it has enough financial resources to cover its financial obligations?

• Income Statement

• Cash Flow Statement ‘

• Balance Sheet

• Liabilities

Which Financial Statement helps us understand whether a company is making or losing money?

• Income Statement

• Cash Flow Statement

• Balance Sheet

• Assets

If there is an excess of revenue over expenses, it is referred to as______________. 

• net income  

• Owners Equity

• Expenses

• Net loss