Financial Statements

The statement of cash flows is __________.

cash flowing in and cash flowing out

Expenses

A cost of doing business.

Income Statement

A statement that shows a company's net income or loss over a specific accounting period after all revenues and expenses are accounted for.

The __________ is a snapshot of the financial position of a company on a single date.

Balance sheet

Which of the following financial statements is two sided and mirrors the accounting equation?

Balance sheet

The income statement presents a summary of an entity's revenues and expenses for a period of time. Which of the following statements is TRUE?

Both A and B are true.

The statement of cash flows provides information about the inflows and outflows of __________.

Cash

The balance sheet shows prepaid insurance under which category?

Current asset

Which one of the following items DOES NOT appear on the balance sheet?

Expenses

__________ is a cost. It is something that was used up and can create a liability if not paid off in cash.

Expenses

______________ are the expenditures needed to operate the business and are associate with the revenue earned for a specific accounting period.

Expenses

The _____________ reports revenues and expenses.

Income Statement

Which financial statement measures a company's operational income performance over a period of time?

Income statement

The financial statements should be prepared in what order?

Income statement, statement of owner's equity, balance sheet, statement of cash flows

The statement of retained earnings provides information regarding which of the following?

Increases and/or decreases in equity

Revenue

Money earned through a business's core operating activity.

The statement of cash flows is classified using which sections?

Operating, investing, and financing

Which of the following accounts is found of the statement of owner's equity and the balance sheet?

Owner's capital

The owner's capital on the statement of owner's equity would be decreased by which of the following?

Owner's withdrawals

An income statement is __________.

Revenue - Expenses = Net income

Which of the following is NOT considered a financial statement?

Schedule of assets

Which of the following Statements shows net income or net loss for a specified period of time?

Statement of owner's equity

Financial statements summarize all of a firm's __________.

revenues, expenses, assets, liabilities, and equity