Exit Ticket - Financial Accounting Reports

What is the primary purpose of a balance sheet?

• • To show a company's revenues and expenses over a period of time

• • To summarize cash inflows and outflows from operations

• • To provide a snapshot of a company's assets, liabilities, and equity at a specific point in time

• To list the company's sales figures for the quarter

is NOT a component of the income statement.

• Net Income
• • Revenues

• Cash Flow from Operations

• • Expenses

The cash flow statement primarily shows

• The company's long-term investment
• The company's assets and liabilities

• • The sources and uses of cash during a specific period

• • The company's total revenue for the year

Which of the following best describes net income?

• • Total revenues minus total expenses

• • Total assets minus total liabilities

• • Cash inflows from operating activities

• Owner’s equity at the end of the period

A company’s cash flow from operating activities is negative. What does this typically indicate?

• • The company is not generating enough revenue to cover its expenses.
    
    

• • The company is investing heavily in new equipment.

• • The company has paid off all its debts.

• The company is experiencing rapid growth.