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1.
Current assets are _______.
Assets likely to be used up or converted into cash within the next year. Current assets are likely to be used up or converted into cash within one business cycle, usually defined as one year.
2.
Which of the following is not part of the statement of cash flows?
Cash flows from expense activities. The statement of cash flows has three sections: cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.
3.
The three elements of a balance sheet are _______.
Assets, liabilities, and shareholder equity. The balance sheet tells you how much a company owns (its assets) and how much it owes (its liabilities). The difference between what it owns and what it owes is its equity.
4.
A companys income statement shows you its revenues and expenses _______.
Over a specific time frame. The income statement shows a companys revenues and expenses over a specific time frame such as three months or a year.
5.
On the income statement, profits tell you _______.
The difference between how much a company brought in and how much it spent during a given period. A companys profits are the difference between how much it brought in (its revenues) and how much it spent (its expenses) during a given period.
