5 Questions
What is the scope of financial statements?
To provide a detailed summary of all business processes
What does a financial statement refer to?
A formal and written record of all financial activities and conditions
What is the concept of the profit and loss (P&L) account?
To describe the financial performance over a period
What is the purpose of finding Earning per Share (EPS) in financial statements?
$EPS = \frac{Net ext{ }Income - Preferred ext{ }Dividends}{Weighted ext{ }Average ext{ }Number ext{ }of ext{ }Shares ext{ }Outstanding}$
What does the balance sheet in financial statements detail upon?
$Equity = Assets + Liabilities$
Test your knowledge of financial statements, outstanding expenses, closing stock treatment, tax provision, dividend, reserves, and earning per share. This quiz covers the concept and naming conventions of different financial statements.
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