Interpreting Financial Info Recap

What are the three core financial statements?

• Cash flow statement, profit and loss statement, statement of financial position

• Profit and loss statement, equity statement, cash flow statement

• Income statement, statement of financial position, cash flow statement

• statement of financial position, income statement, equity statement

Which financial statement shows a company's assets, liabilities, and shareholders' equity?

• Equity statement

• Income statement

• statement of financial position

• Cash flow statement

What does the income statement illustrate?

• The financial position of a company

• The profitability of a company

• The equity changes of a company

• The cash movements of a company

Which section is NOT part of the cash flow statement?

• Cash from equity

• Cash from financing

• Cash used in investing

• Cash from operations

What is the purpose of the statement of financial position?

• To show revenue and expenses

• To show cash movements

• To show profitability

• To show financial position

Which financial statement is reported over a period of time?

• Liabilities statement

• Statement of financial position

• Income statement

• Equity statement

What is the starting point of the cash flow statement?

• Cash balance

• Revenue

• Retained earnings

• Net income

Which financial statement uses accrual accounting principles?

• Equity statement

• Income statement

• Balance sheet

• Cash flow statement

What is the ending point of the income statement?

• Cash balance

• Total liabilities

• Retained earnings

• Net income

Which of the following is a key feature of the cash flow statement?

• Shows the increases and decreases in cash.

• Shows the revenues and expenses of a business.

• Shows the financial position of a business.

• Shows the equity changes of a business.