Financial statement analysis ACTUAL
QUESTIONS AND CORRECT ANSWERS
Balance Sheet - CORRECT ANSWERS provides a snapshot of a company's financial
position as of a certain date
Assets - CORRECT ANSWERS items of value such as inventory and equipment are
financed with liabilities(debt) or stockholders' equity(owners' shares)
Assets= liabilities + stockholders' equity
Income Statement - CORRECT ANSWERS reports the company's profitability during an
accounting period
Revenues - CORRECT ANSWERS amounts recieved from customers for products sold or
services provided
Expenses - CORRECT ANSWERS costs incurred to produce revenues
Net Income - CORRECT ANSWERS Revenues-Expenses
Statement of Stockholders equity - CORRECT ANSWERS reports if the earnings of this
accounting period are distributed as dividends or retained in the business as retained earnings.
Also reports amounts paid by stockholders to purchase common stock and preferred stock
Retained earnings(ending) - CORRECT ANSWERS Retained earnings + Net Income -
(Dividends)
, Contributed capital (ending) - CORRECT ANSWERS Contributed capital, beginning +
issuance of shares - (Repurchase to retire shares)
Statement of cash flows - CORRECT ANSWERS reports cash inflows + cash outflows
during an accounting period
Accounts recievable - CORRECT ANSWERS amounts to be recieved in the future from
customers
Accounts Payable - CORRECT ANSWERS amounts that the corporation must pay to
suppliers in the future
Stockholders' Equity - CORRECT ANSWERS portion of assets the owners are free and
clear of any liabilities
Contributed Capital - CORRECT ANSWERS amounts paid by stockholders to purchase
common stock and preferred stock
Retained Earnings - CORRECT ANSWERS Net income earned by the company since its
incorporation and not yet distributed as dividends
Cost of Goods Sold - CORRECT ANSWERS largest expense item which reports the
wholesale costs of inventory sold during the accounting period
Operating activities - CORRECT ANSWERS relate to a company's main business: selling
products or services to earn net income
QUESTIONS AND CORRECT ANSWERS
Balance Sheet - CORRECT ANSWERS provides a snapshot of a company's financial
position as of a certain date
Assets - CORRECT ANSWERS items of value such as inventory and equipment are
financed with liabilities(debt) or stockholders' equity(owners' shares)
Assets= liabilities + stockholders' equity
Income Statement - CORRECT ANSWERS reports the company's profitability during an
accounting period
Revenues - CORRECT ANSWERS amounts recieved from customers for products sold or
services provided
Expenses - CORRECT ANSWERS costs incurred to produce revenues
Net Income - CORRECT ANSWERS Revenues-Expenses
Statement of Stockholders equity - CORRECT ANSWERS reports if the earnings of this
accounting period are distributed as dividends or retained in the business as retained earnings.
Also reports amounts paid by stockholders to purchase common stock and preferred stock
Retained earnings(ending) - CORRECT ANSWERS Retained earnings + Net Income -
(Dividends)
, Contributed capital (ending) - CORRECT ANSWERS Contributed capital, beginning +
issuance of shares - (Repurchase to retire shares)
Statement of cash flows - CORRECT ANSWERS reports cash inflows + cash outflows
during an accounting period
Accounts recievable - CORRECT ANSWERS amounts to be recieved in the future from
customers
Accounts Payable - CORRECT ANSWERS amounts that the corporation must pay to
suppliers in the future
Stockholders' Equity - CORRECT ANSWERS portion of assets the owners are free and
clear of any liabilities
Contributed Capital - CORRECT ANSWERS amounts paid by stockholders to purchase
common stock and preferred stock
Retained Earnings - CORRECT ANSWERS Net income earned by the company since its
incorporation and not yet distributed as dividends
Cost of Goods Sold - CORRECT ANSWERS largest expense item which reports the
wholesale costs of inventory sold during the accounting period
Operating activities - CORRECT ANSWERS relate to a company's main business: selling
products or services to earn net income
