Financial Statements

Question 1

long-term resources used by the firm for more than a year. E.g., land, buildings, machinery, equipment, furniture.

Accepted Answer

Fixed Assets

Question 2

Management Accounting is concerned with preparation of Financial Statements

Accepted Answer

False

Question 3

If Revenue is higher than expenses, then it is a net loss

Accepted Answer

False

Question 4

Summarises a firm’s financial position at a specific point in time

Accepted Answer

Balance Sheet

Question 5

Raw materials and parts, labour, factory overhead are examples of

Accepted Answer

Cost of Goods Sold

Question 6

a summary of the money flowing into and out of a firm’s accounts during a certain period (usually a year)

Accepted Answer

Statement of Cash Flows, Cash Flow Statement

Question 7

Retained Earnings are Total Profit (Net Profit) minus all ________ paid to shareholders

Accepted Answer

Dividends

Question 8

Tax is subtracted from Income before Operating Expenses

Accepted Answer

False

Question 9

Costs of generating revenues

Accepted Answer

Expenses

Question 10

Indicate three primary elements of Income Statement

Accepted Answer

Revenue, Expenses, Net Profit

Question 11

Gross Profit is ________

Accepted Answer

Revenue minues cost of goods sold

Question 12

Expenses can be cost of goods sold and operating expenses

Accepted Answer

True

Question 13

Indicate Financial Statements correctly

Accepted Answer

Balance Sheet, Income Statement, Cash Flow Statement, Statement of Financial Position / Profit and Loss / Cash Flow

Question 14

Indicate three main activities related to cash flow

Accepted Answer

Operating, Investment, Financial

Question 15

______is a financial statement which records revenue, costs, and profits of a business for a given time period.

Accepted Answer

Statement of Profit and Loss, Income Statement

Question 16

Justin Bieber&#x27;s main responsibility is to produce Financial Statements for investors, banks and suppliers. He is

Accepted Answer

Financial Accountant

Question 17

UzAutoMotors earned $ 100 000 of net income, so it means they have $ 100 000 in cash

Accepted Answer

False

Question 18

Except for land, all other fixed assets _______ in value

Accepted Answer

Depreciate

Questions 18