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Questions and Answers
What is the alternative name for the Statement of Profit or loss and other Comprehensive Income?
In which financial statement are revenues and expenses reported to show a business's performance over a period of time?
Which of the following is an example of an asset?
What term refers to the liability created by a business when it purchases goods on credit from suppliers?
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Which financial statement shows the company's financial position at a specific point in time?
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What type of expenses are typically not recorded in the Statement of Financial Position?
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Study Notes
Financial Statements
- The Statement of Profit or Loss and Other Comprehensive Income provides a review of a business's profitability.
- This statement is also known as the Income Statement.
Statement of Financial Position
- This statement shows the company's financial situation at a specific point in time.
- Rent expenses are not recorded in the Statement of Financial Position.
Cash Flow Statement
- The Cash Flow Statement shows the flow of cash and cash equivalents during a financial period.
Assets and Liabilities
- An asset is a resource belonging to a company that has future benefit to the company.
- An account payable is a liability created by a business when it purchases goods on credit from suppliers.
- An account receivable is the right to receive money in the future.
Reporting Performance
- To show how successfully a business performed during a period of time, you would report its revenues and expenses in the Statement of Profit or Loss and Other Comprehensive Income.
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Description
Test your knowledge on financial statements with this quiz! See if you can identify different types of financial reports and understand their significance in assessing a business's performance.
