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Questions and Answers
What is the alternative name for the Statement of Profit or loss and other Comprehensive Income?
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?
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?
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?
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?
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?
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.
