Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
The statement of cash flows tells you what?
How much cash went into and out of a company during a specific time period. The cash flow statement is similar to the income statement, but due to accrual accounting, it covers only actual cash.
2.
The three elements of an income statement are _______.
Revenues, expenses, and profit. The income statement tells you how much money a company has brought in (its revenues), how much it has spent (its expenses), and the difference between the two (its profit).
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.
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.
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.
