the word phrase or name with the best answer Balance Sheet P

the word, phrase or name with the best answer Balance Sheet Profit and Loss Statement Cash Flow Statement A. Shows were money goes B. Income Statement C.A snapshot of the financial health of an organizatic D. Value over time oving to the next question prevents changes to this answer FIRST EXAM. .docK

Solution

Balance sheet - (C) A snapshot of the financial health of an organisation

A balance sheet is a statement which shows assets and liabilities of an organisation as at a particular date. It may be prepared for quarterly, half yearly or on yearly basis.

Profit and loss statement - (B) Income statement

Profit and loss account or income statement is prepared to know the amount of profit earned or loss suffered during a particular time period and that particular time period may be a quarter or a half year or a year.

Cash flow statement - (A) Shows where money goes

A cash flow statement is a statement which shows all inflows and outflows of cash during a particular time period. A cash flow statement may be historic in nature or it may be a projected cash flow statement for a future time period.

Depreciation - (D) Value over time

Depreciation is the fall in the value of fixed assets due to wear and tear, lapse of time or obsolescence. Thus it is a charge for the use of the fixed asset.