Financial Management a-2 with correct answers 2025/2026

Financial Management a-2 with correct
answers 2025/2026


List the four major financial statements - correct answers-1. Balance Sheet
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2. Income Statement
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3. Statement of Cash Flows
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4. Statement of Owners Equity
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Explain the relationship of the balance sheet and the income statement with respect to time. -
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correct answers-Income Statement: represents a period of time
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Balance Sheet: represents a snapshot in time
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Are the income statement and the cash flow statement related? - correct answers-
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Yes, Net income changes cash flows
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Should income statements and cash flows be correlated? - correct answers-Yes
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What might an absence of correlation in income statements and cash flows indicate? -
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correct answers-
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That a company does not collect their accounts receivables, so Net income might increase, while cas
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h flow stays the same.
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