Financial Statements are reports on the financial performanc

Financial Statements are reports on the financial performance of organizations. They provide data on:

The primary function of the Income Statement is to:

The primary function of the Balance Sheet is to:

The main three sections of the Cash Flow Statement are:

Which of the following lists are all Assets found in the Balance Sheet:

The Balance Sheet equation is:

Which one of the following lists are the Current Liabilities of a company:

Which is correct about Preferred Stock:

Which one of the below is the MAJOR responsibility of a businessperson:

Which is the most relevant statement to an employee regarding the understanding and use of financial statements:

Solution

1. Option E. Where money comes from, what money is spent on and how much money is available for use. The Financial Statements shares details of financial position of the company by providing information of assets avaiable, income earned by using assets, liabilities and capital position.

2. Option A. Measure the company\'s financial performance over a period of time.

3. Option C,. Show the company\'s value as of a given point in time

4. Option A. Cash from operating activities; cash from investing activities and cash from financing activities

5. Option C. Cash, accounts receivable, marketable securities, inventory and prepaid expenses

6. Option D. Assets = Liabilities plus Equity

7. Option A. Accounts Payable, Notes Payable, Accrued Expenses AND Income Taxes Payable

8. Option A. It has priority over common stock in the event of the dissolution of the company

9. Option D. Making sure the company is legally compliant with all reporting and other regulatory requirements

10. Option E. They can help any employee understand her or his impact on the financial health of the company