Balance Sheet and Cash Flow Quiz

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15 Questions

Match the following financial statements with their primary purpose:

Balance Sheet = Provides a snapshot of a business's financial position at a specific point in time Income Statement = Shows the company's financial performance over a period of time Cash Flow Statement = Shows the movement of cash in and out of a business Statement of Shareholders' Equity = Details changes in equity over a specific period

Match the following types of business activities with their descriptions:

Operating Activities = Involve day-to-day operations of the business Investing Activities = Involve acquisition and disposal of long-term assets Financing Activities = Involve obtaining and repaying funds Management Activities = Strategic decision-making for the business

Match the following features with the correct financial statement:

Snapshot of financial position at a specific point in time = Balance Sheet Shows how operations affect cash position = Cash Flow Statement Details changes in equity over a specific period = Statement of Shareholders' Equity Shows the company's financial performance over a period of time = Income Statement

Match the following elements with their placement on the balance sheet:

Assets = On one side Liabilities = On one side Equity = On the other side Revenue = Not directly listed

Match the following statements with their relevance to stakeholders:

Assessing financial health and solvency = Relevant to stakeholders Strategic decision-making for the business = Not directly relevant to stakeholders Understanding cash generation and financing needs = Relevant to stakeholders Providing a snapshot of financial position at a specific point in time = Relevant to stakeholders

Match the following with their correct category on the balance sheet:

Cash, Inventory, Property, Equipment = Assets Accounts Loans, Accounts Payable, Accrued Expenses = Liabilities Accounts Common Stock, Retained Earnings = Equity Accounts Revenues, Expenses, Operating Income/EBIT, Net Income = Income Statement Terms

Match the following accounting methods with their descriptions:

Records transactions when cash is received or paid = Cash Basis Records transactions when they occur, regardless of when cash is received or paid = Accrual Basis Classify cash flows from day-to-day operations = Operating Activities Classify cash flows from obtaining or repaying funds = Financing Activities

Match the following terms with their correct representation on the balance sheet:

Resources owned by a business = Assets Accounts Obligations of a business = Liabilities Accounts Ownership interest in a business = Equity Accounts Summarize the financial performance of a business over a period of time = Income Statement Terms

Match the following with their correct classification of cash flows:

Cash flows from buying or selling assets = Investing Activities Cash flows from day-to-day operations = Operating Activities Cash flows from obtaining or repaying funds = Financing Activities Records transactions when they occur, regardless of when cash is received or paid = Accrual Basis

Match the following balance sheet categories with their appropriate representation:

Represent the resources owned by a business = Assets Accounts Represent the obligations of a business = Liabilities Accounts Represent the ownership interest in a business = Equity Accounts Represent the financial performance of a business over a period of time = Income Statement Terms

Match the financial ratio with its description:

Liquidity Ratio = Measures a company's ability to meet short-term obligations using current assets Assets Management Ratios = Measures how efficiently a company manages its assets to generate sales Debt Management Ratios = Measures a company's ability to manage debt and meet long-term obligations Profitability Ratios = Measures a company's ability to generate profits from its operations

Match the external use of the cash flow statement with its purpose:

External Uses of Cash Flow Statement = Assess a company's ability to generate cash and its cash flow management Internal Uses of Cash Flow Statement = Monitor and analyze the company's cash flow, identify areas of improvement, and make informed financial decisions Liquidity Ratio = Measure a company's ability to meet short-term obligations using current assets Debt Management Ratios = Measure a company's ability to manage debt and meet long-term obligations

Match the purpose with the stakeholder using the cash flow statement:

External Uses of Cash Flow Statement = Investors and creditors Internal Uses of Cash Flow Statement = Management Liquidity Ratio = Investors and creditors Profitability Ratios = Management

Match the financial metric with its measurement focus:

Current Ratio = Short-term obligations using current assets Inventory Turnover Ratio = Efficiency in managing assets to generate sales Debt-to-Equity Ratio = Ability to manage debt and meet long-term obligations Gross Profit Margin = Ability to generate profits from operations

Match the type of cash with its definition:

Cash (in physical form) = Physical currency, such as coins and banknotes Cash (in bank accounts) = Funds held in bank accounts that are readily available for use External Uses of Cash Flow Statement = Assess a company's ability to generate cash and its cash flow management Debt Management Ratios = Measure a company's ability to manage debt and meet long-term obligations

Test your knowledge of balance sheets and cash flow with this quiz. Explore the concepts of assets, liabilities, equity, and the movement of cash in and out of a business.

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