Quiz for:
Overview of Financial Statements Essentials

Question 1

What is another name for the Income Statement?

Question 2

What is depicted by the Cash Flow Statement's 'Financing Activities' section?

Question 3

What does the header of a balance sheet typically include?

Question 4

Why are equity contributions considered a part of the balance sheet?

Question 5

On a balance sheet, what do total assets always equal?

Question 6

What is the primary purpose of financial statements?

Question 7

What is the accounting equation fundamental to the Balance Sheet?

Question 8

Which financial statement provides a snapshot of a business's assets, liabilities, and equity at a single point in time?

Question 9

What distinguishes the cash flow statement's recording method compared to other statements?

Question 10

Which section of the cash flow statement records regular business activity cash flows?

Question 11

Why is profit on the income statement not equal to cash flow?

Question 12

In accrual accounting, when are revenues and expenses recognized?

Question 13

How does the cash flow statement relate to the balance sheet?

Question 14

In the Tealicious example, what was the net profit reported on the Income Statement?

Question 15

Which financial statement summarizes business revenues and expenses over a period of time?