Which of the following financial statements shows a company’s financial position at a specific point in time?
a) Income statement
b) Cash flow statement
c) Balance sheet
d) Statement of changes in equity
Which financial statement provides information about a company’s profitability over a period of time?
a) Balance sheet
b) Income statement
c) Cash flow statement
d) Statement of changes in equity
What does the cash flow statement primarily focus on?
a) The company’s revenues and expenses
b) The company’s net worth
c) The inflow and outflow of cash
d) The company’s long-term debt obligations
Which of the following is NOT typically included in the statement of changes in equity?
a) Issuance of stock
b) Retained earnings
c) Depreciation
d) Dividends paid
The statement of comprehensive income includes which of the following?
a) Net income only
b) Net income and other comprehensive income
c) Revenues and expenses
d) Changes in equity
Which of the following accounts would be found on the balance sheet?
a) Revenue
b) Operating expenses
c) Retained earnings
d) Gross profit
Which of the following is a key component of the income statement?
a) Assets
b) Liabilities
c) Revenues
d) Dividends
Which financial statement helps in understanding the company’s long-term debt position?
a) Income statement
b) Balance sheet
c) Statement of changes in equity
d) Cash flow statement
Which of the following statements reports the company’s ability to generate cash from operations?
a) Cash flow statement
b) Balance sheet
c) Income statement
d) Statement of changes in equity
The statement of changes in equity shows the movement in which of the following?
a) Net income
b) Shareholder equity
c) Current liabilities
d) Operating expenses
What is included in other comprehensive income?
a) Net income
b) Unrealized gains and losses on investments
c) Depreciation
d) Dividends paid
Which financial statement summarizes the changes in cash during a specific period?
a) Balance sheet
b) Cash flow statement
c) Income statement
d) Statement of changes in equity
The statement of cash flows includes which of the following?
a) Depreciation
b) Net income
c) Assets and liabilities
d) Changes in equity
Which of the following is a primary purpose of the income statement?
a) To show the company’s cash flow
b) To report the company’s profitability
c) To show the company’s financial position at a point in time
d) To report the equity changes
The balance sheet is also known as the statement of: a) Operations
b) Financial position
c) Retained earnings
d) Earnings per share
Which of the following financial statements does NOT include information about cash?
a) Cash flow statement
b) Income statement
c) Balance sheet
d) Statement of changes in equity
Which of the following is included in the balance sheet?
a) Revenues
b) Net income
c) Assets and liabilities
d) Cash flow from operating activities
Which of the following statements provides details on the company’s revenues and expenses?
a) Balance sheet
b) Income statement
c) Statement of changes in equity
d) Cash flow statement
Which of the following is a component of the cash flow statement?
a) Operating activities
b) Shareholder equity
c) Earnings per share
d) Net income
The statement of changes in equity shows how which of the following has changed over a period of time?
a) Assets
b) Liabilities
c) Shareholders’ equity
d) Cash
What type of information is provided by the balance sheet?
a) Income and expenses
b) Cash inflows and outflows
c) Company’s assets, liabilities, and equity
d) Shareholders’ equity changes
Which of the following best describes the purpose of the income statement?
a) To track changes in financial position
b) To show the company’s cash flow from operations
c) To calculate the company’s profitability over a period of time
d) To record shareholder contributions
The statement of cash flows is divided into which of the following sections?
a) Assets, liabilities, and equity
b) Operating, investing, and financing activities
c) Revenues, expenses, and taxes
d) Cash inflows, cash outflows, and net income
Which of the following is a typical item found in the balance sheet?
a) Revenue
b) Cash from operating activities
c) Current assets
d) Operating expenses
Which financial statement is used to evaluate the changes in a company’s financial position over a period of time?
a) Cash flow statement
b) Statement of changes in equity
c) Income statement
d) Balance sheet
Which of the following sections is NOT included in the statement of cash flows?
a) Operating activities
b) Investing activities
c) Financing activities
d) Revenue activities
Which of the following would NOT be included in the statement of changes in equity?
a) Issuance of stock
b) Net income
c) Depreciation expense
d) Dividend payments
Which of the following provides information on a company’s long-term investments?
a) Balance sheet
b) Income statement
c) Cash flow statement
d) Statement of changes in equity
