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WorksheetsFinancial Statements
Total questions: 41
Worksheet time: 50mins
Which financial statement provides a snapshot of a company's financial position at a specific point in time?
Income Statement
Balance Sheet
Cash Flow Statement
All of the statements.
Organize these scenarios into the right categories
Bakery earns $500 from selling cupcakes
A car repair shop charges $500 for engine repair.
A digital marketing company invoices a client $5000 for a social media campaign.
Coffee shops spends $500 on coffee beans, milk and other ingredients.
The repair shop spends $500 a week on speciality parts.
The school store buys $1000 in inventory every month.
The retail store is late on its lease payment of $1200.
The designer spends $200 on software services for their online business.
The store owner spends $400 on advertising their new products.
A business has assets of $1,200,000 and liabilities of $500,000. What is the owner's equity?
Which statement would you use to evaluate a company's profitability over a period of time.
Balance Sheet
Income Statment
Cash Flow Statement
All of the statements.
Organize these scenarios into the right categories
A saloon uses a computer system to schedule clients worth $2000
A clothing brand has $7500 in unpaid vendor fees.
The founder of a tech company has increased his investment in the company by $50,000.
A business has $10,000 in its bank account
A gym has a mortgage payment due in 2 days.
A business uses its $2000 in retained earnings to reinvest in the company.
A photographer owns a professional camera set.
A shipping company owes $5000 in wages.
A company issues stock, increasing ownership.
Which section of the cash flow statement includes cash received from customers?
Investing Activity
Operating Activity
Financing Activity
Cash flow
Label assets, liabilities and owner's equity
A sneaker reseller has $12,000 in assets and an owner’s equity of $8,500.
How much is their total liabilities?
A company's total assets increase by $300,000 and its total liabilities increase by $180,000, what is the change in owner's equity?
120,000 increase
120,000 decrease
180,000 increase
180,000 decrease
Expenses are classified as what type of account?
Assets
Liabilities
Equity
Revenue
Retained Earnings are ....
Asset
Liability
Owner's Equity
The accounting equation must always ___________.
Which of the following is an example of a financing activity?
Purchasing Equipment
Paying Salaries
Issuing Bonds
Selling Inventory
Organize these scenarios into the right categories
Paying utility bills.
Paying interest on a business loan.
Receiving interest from a loan given to another business.
Cash from sales
Buying stock in another company.
Selling a company vehicle.
Buying new equipment for production.
Paying off a loan's principal amount.
Paying dividends to shareholders
Issuing bonds to raise money for expansion.
The Income Statement reports:
Assets and Liabilities
Cash Inflows and Outflows
Revenue and Expenses
Owner's Equity
A clothing boutique’s financial report shows:
Cash received from sales: $30,000
Payment for new inventory: $15,000
Advertising expenses: $2,000
Dividend received from investments: $1,500
Employee wages: $7,500
What is the net cash flow
Kathy wants to know whether her boutique made or lost money this month. The financial document she should view is her:
balance sheet
income statement
cash flow statement
statement of owner’s equity
Which of the following statements is true regarding accounts receivable?
Accounts receivable represent the amounts a company owes to its suppliers for purchases made on credit.
Accounts receivable are recorded as a current liability on the balance sheet.
Accounts receivable arise when a company sells goods or services on credit to customers.
Accounts receivable decrease when a company makes a credit sale.
Which of the following statements is true regarding accounts payable?
Accounts payable arise when a company purchases goods or services on credit from suppliers.
Accounts payable represent the amounts a company expects to receive from customers for sales made on credit.
Accounts payable are recorded as a current asset on the balance sheet.
Accounts payable decrease when a company receives payment from customers.
Cash Flow for a Tractor Supply
Interest paid on loan: $500
Sales revenue: $25,000
Equipment purchase: $7,000
Loan borrowed from a bank: $10,000
Office supplies expense: $1,200
What is net cash flow?
Food Truck Financials:
Accounts Receivable: $10,000
Equipment: $50,000
Accounts Payable: $20,000
Inventory: $25,000
Long-term Loan: $30,000
Cash: $15,000
What is the total in assets?
Which of the following best defines Cost of Goods Sold (COGS)?
The revenue generated from selling products or services.
The operating expenses related to administrative functions.
The net profit earned after deducting all expenses.
The total cost incurred to produce goods or services sold by a company during a specific period.
Company A's Balance Sheet
Assets: $200,000
Liabilities: $120,000
Equity: $80,000
Transaction: The company purchases additional inventory worth $30,000 on credit.
What is the balance for equity?
Which of the following costs would be included in the Cost of Goods for a manufacturing plant?
Administrative salaries
Direct labor used in production
Sales office rent
Depreciation on office equipment
If Assets are $19,500 and Shareholders Equity is $14,300, how much are Liabilities?
Which of the following would be considered a cash outflow from financing activities?
Payment of interest on a loan
Repurchase of the company's own stock
Purchase of equipment
Payment to suppliers for inventory
An accounting report that is used to show revenue and expenses is the
Cash flow statement
Revenue and Expenses Statement
The Profit or Loss Statement
Balance sheet
Kathy wants to know whether her boutique made or lost money this month. The financial document she should view is her:
balance sheet
income statement
cash flow statement
statement of owner’s equity
Accounts payable is a (a)
Owner's Draws
___ refers to the dollar amount of the owner’s equity in the business.
revenue
capital
profits
assets
Which of the following is considered an operating activity in the cash flow statement?
Issuing new shares
Paying dividends
Purchasing a new building
Collecting cash from customers
Which of the following would be classified as a current asset?
Goodwill
Buildings
Accounts receivable
Long-term investments
If Company A has:
$2,300 in Cash
$400 in Accounts Payable
$500 in Accounts Receivable
$1,100 in Bank Loans
What is Company A's Owners Equity?
Which of the following is an example of an investing activity in the cash flow statement?
Issuing dividends
Purchasing machinery
Collecting cash from sales
Paying off a loan
In your own words, What are assets?
How many ways can you write the accounting equation?
(a)
Investment and Drawing are both classified as:
owner's equity.
expenses
liabilities
revenue
Maria owns a small business selling custom T-shirts. Below are her business's financial details for the month of March:
Revenue (Sales): $12,000
Cost of Goods Sold (COGS): $4,500
Operating Expenses: $3,000
Taxes: $1,200
What is the net income?
12,000
7500
1200
3300
What can a company do to increase their net income?
