JCB Business Insight

What is the primary purpose of a cash flow statement

• To show profitability.

• To track cash movements.

• To calculate depreciation.

• To list accounts payable

. In a cash flow statement, which section includes cash received from customers?

• Operating activities

• Investing activities

• Financing activities

• non-operating activities

What is the primary focus of an income and expenditure statement?

• Tracking inflows and outflows

• Assessing liquidity.

• Evaluating profitability.

• Listing assets and liabilities

Gross profit is calculated by subtracting which of the following from total revenue?

• Operating expenses

• non-operating income

• Cost of goods sold.

• Total liabilities

Which of the following is not a component of a balance sheet?

• Assets

• Liabilities

• Equity

• Expenses

According to the fundamental accounting equation, Assets = Liabilities + Equity, if total assets are £50,000 and total liabilities are £20,000, what is the equity?

• £30,000

• £50,000

• £20,000

• £70,000