Which financial statement provides a snapshot of a company’s financial position at a specific point in time?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: b) Balance sheet
Which financial statement reports a company’s revenues, expenses, and net income or loss over a period of time?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: a) Income statement
Which financial statement shows the changes in a company’s equity, including contributions from shareholders and retained earnings?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: d) Statement of changes in equity
Which financial statement provides information about a company’s cash receipts and cash payments during a specific period?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: c) Statement of cash flows
Which financial statement is also known as the profit and loss statement?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: a) Income statement
Which financial statement would you consult to determine the amount of cash a company has on hand?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: c) Statement of cash flows
Which financial statement shows the relationship between a company’s assets, liabilities, and shareholders’ equity?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: b) Balance sheet
Which financial statement is prepared as of a specific date?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: b) Balance sheet
Which financial statement is prepared for a specific period, such as a month, quarter, or year?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: a) Income statement
Which financial statement is commonly used to assess a company’s profitability?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: a) Income statement
Which financial statement shows the historical changes in a company’s retained earnings?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of retained earnings
Answer: d) Statement of retained earnings
Which financial statement provides information about the sources and uses of cash during a specific period?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: c) Statement of cash flows
Which financial statement reports the amount of debt a company owes to external creditors?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: b) Balance sheet
Which financial statement shows the relationship between a company’s revenues and expenses over a period of time?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: a) Income statement
Which financial statement would you consult to analyze a company’s ability to generate cash flow from its operations?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: c) Statement of cash flows
Which financial statement is also known as the statement of financial position?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: b) Balance sheet
Which financial statement provides information about a company’s investments in other entities?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: b) Balance sheet
Which financial statement is useful in evaluating a company’s liquidity and solvency?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: b) Balance sheet
Which financial statement reports the changes in a company’s cash and cash equivalents during a specific period?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: c) Statement of cash flows
Which financial statement shows the changes in a company’s long-term debt and equity accounts?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: d) Statement of changes in equity
Which financial statement provides information about a company’s revenue, cost of goods sold, and gross profit?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: a) Income statement
Which financial statement is prepared by subtracting expenses from revenues to calculate net income or loss?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: a) Income statement
Which financial statement shows the ownership interest in a company’s assets after deducting liabilities?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: b) Balance sheet
Which financial statement reports the cash inflows and outflows from a company’s operating, investing, and financing activities?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: c) Statement of cash flows
Which financial statement reflects the retained earnings at the beginning and end of a specific period?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: d) Statement of changes in equity
Which financial statement is used to calculate a company’s earnings per share (EPS)?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: a) Income statement
Which financial statement provides information about a company’s investments in stocks, bonds, and other securities?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: b) Balance sheet
Which financial statement shows the movement of cash between a company’s operating, investing, and financing activities?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: c) Statement of cash flows
Which financial statement displays the ending balances of a company’s assets, liabilities, and shareholders’ equity?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: b) Balance sheet
Which financial statement indicates the changes in a company’s stockholder contributions, dividends, and net income?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: d) Statement of changes in equity
Which financial statement provides information about a company’s fixed assets, intangible assets, and current liabilities?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: b) Balance sheet
Which financial statement shows the movement of cash between a company’s operating, investing, and financing activities?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: c) Statement of cash flows
Which financial statement reports the changes in a company’s equity accounts, such as common stock and retained earnings?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: d) Statement of changes in equity
Which financial statement provides information about a company’s sales revenue, cost of goods sold, and gross profit margin?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: a) Income statement
Which financial statement indicates the sources of a company’s cash inflows and the uses of its cash outflows?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: c) Statement of cash flows
Which financial statement reports the amount of a company’s short-term and long-term debt?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: b) Balance sheet
Which financial statement shows the changes in a company’s cash, accounts receivable, and inventory over a specific period?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: b) Balance sheet
Which financial statement summarizes a company’s revenues, expenses, gains, and losses for a specific period?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: a) Income statement
Which financial statement provides information about a company’s dividends paid to shareholders?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: d) Statement of changes in equity
Which financial statement presents the financial performance of a company over a specific period, such as a year?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of changes in equity
Answer: a) Income statement