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Financial Statements (Prelim Business) Flashcards | StudBud
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Financial Statements (Prelim Business)
Financial Statements (Prelim Business)
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Y11 Business Studies summary of cash flow statements, income statements and balance sheets.
Flashcards
15 cards
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Questions
15
Answers
1
Which of the following is NOT found in an income statement?
Cost of Goods Sold
Revenue
Assets
Net Profit
2
What is another name for a cash inflow?
Cash Movement
Cash Receipt
Cash Outflow
Cash Payment
3
The opening cash position in the cash flow statement is also the previous closing cash position
False
True
4
Opening Cash Position + Cash Inflows - Cash Outflows = Closing Cash Position relates to...
Income Statement
Balance Sheet
Profit and Loss Statement
Cash Flow Statement
5
What is the equation to calculate Gross Profit?
Expenses - Revenue = Gross Profit
Revenue - Net Profit = Gross Profit
Revenue - Cost of Goods Sold = Gross Profit
Revenue - Expenses = Gross Profit
6
What is the balance sheet equation?
Assets = Liabilities + Owners Equity
Assets = Current Liabilities - Owners Equity
Liabilities = Current Assets + Non-current assets
Owners Equity = Assets + Working Capital
7
Which of the below is an example of a current asset?
Bank Loan
Wages payable
Cash in the bank
Goodwill
8
Financial statements are reports that summarise transactions over a period of time
True
False
9
Which of these is an example of a cash payment?
Payment terms
Wages
Cash Sales
Credit Sales
10
The two sides of the balance sheet will always be equal.
True
False
11
Giving customers longer to pay for their goods is better for cash flow.
True
False
12
How does a business calculate the Cost of Goods Sold (COGS)?
Opening Stock + Purchases - Closing Stock = COGS
Opening Stock - Purchases - Closing Stock = COGS
Opening Stock - Sales + Closing Stock = COGS
Opening Stock + Sales - Closing Stock = COGS
13
What is the equation to calculate Net Profit
Gross Profit - Expenses
Cost of Goods Sold + Expenses
Revenue - Expenses
Revenue - Cost of Goods Sold
14
What do cash flow statements measure?
Profitability
Liquidity
Equity
Sustainability
15
What does the balance sheet show a business?
Profitability of the business
Financial stability of the business
Staff Performance
Total expenses
