Understanding Financial Statements

Understanding Financial Statements

Assessment

Interactive Video

Business

9th - 10th Grade

Practice Problem

Hard

Created by

Jennifer Brown

FREE Resource

10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary purpose of financial statements?

To list all company employees

To predict future stock prices

To summarize a company's financial activities

To provide a detailed history of a company's operations

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

Equity

Revenue

Liabilities

Assets

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How is equity calculated on a balance sheet?

Assets minus liabilities

Cash flow minus expenses

Revenue minus expenses

Assets plus liabilities

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the income statement primarily show?

A company's net income over a period

A company's equity

A company's cash flow

A company's assets and liabilities

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If a company has $1 million in sales and $700,000 in expenses, what is its net income?

$1,000,000

$1,700,000

$300,000

$700,000

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which statement tracks real cash movements?

Cash flow statement

Equity statement

Balance sheet

Income statement

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are the three sections of the cash flow statement?

Revenue, expenses, and net income

Sales, purchases, and dividends

Assets, liabilities, and equity

Operating, investing, and financing activities

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