Financial Statements Quiz

What does the income statement summarize?

• A company's assets and liabilities

• A company's revenues, expenses, and profits (or losses)

• A company's cash inflows and outflows

• A company's inventory and sales

Which component of the income statement represents the profit generated from core business activities?

• Net Profit

• Gross Profit

• Operating Expenses

• Revenue

What is deducted from revenue to calculate Gross Profit?

• Operating Expenses

• Taxes

• Cost of Goods Sold (COGS)

• Interest

What is the bottom line of the income statement?

• Revenue

• Gross Profit

• Net Profit

• Operating Expenses

What are assets expected to be converted into cash within one year called?

• Current Assets

• Non-Current Assets

• Fixed Assets

• Intangible Assets

Which type of liabilities are due within one year?

• Current Liabilities

• Non-Current Liabilities

• Fixed Liabilities

• Variable Liabilities

Which of the following is a current asset?

• Inventory

• Patents

• Real Estate

• Equipment

Which of the following is an example of a current liability?

• Accounts Payable

• Bonds Payable

• Mortgages

• Patents

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

• Revenue

• Assets

• Liabilities

• Equity

What does a cash flow statement track?

• The total assets of a company

• The movement of cash into and out of the business

• The total liabilities of a company

• The equity of a company