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