Financial Statement

The purpose of this financial statement is to demonstrate a company's financial position and its solvency (ex. it's ability to meet long-term financial obligations)

• Income Statement

• Balance Sheet

• Cash Flow Statement

• Owner's Equity Statement

The purpose of this financial statement is to show how profitable a company is.

• Income Statement

• Balance Sheet

• Cash Flow Statement

• Owner's Equity Statement

The purpose of this financial statement is to display cash inflows and outflows from activities such as operating, investing and financing.

• Income Statement

• Balance Sheet

• Cash Flow Statement

• Owner's Equity Statement

The purpose of this financial statement is to explain changes in capital and retained earnings.

• Income Statement

• Balance Sheet

• Cash Flow Statement

• Owner's Equity Statement

Cash flows for the current and future development of the company such as purchasing equipment.

• Financing Activities

• Operating Activities

• Investing Activities

Cash flows from shareholders' contributions and distributions and bank loans.

• Financing Activities

• Operating Activities

• Investing Activities

Cash flows from day to day operations such as selling goods to customers and paying wages to employees.

• Financing Activities

• Operating Activities

• Investing Activities

On financial statements a single line represents the subtotal amount.

• True

• False

On financial statements a double line represents the subtotal amount.

• True

• False

If a number is represented ($185,000) on a financial statement it is the same as saying it is equal to:

• $185,000

• -$185,000