Purpose of financial statements:

• What is the main purpose of financial statements?

  Summarize financial activities
• What does the Balance Sheet track?

  Assets, liabilities, equity
• The Balance Sheet provides a snapshot of a business's assets, liabilities, and equity
• What key information is provided by the Income Statement?

  Revenue, expenses, profit/loss
• What is the purpose of the Balance Sheet when compared to the Income Statement?

  Snapshot of financial position
• The Balance Sheet provides a snapshot of financial position at a specific point in time.


  True
• What type of time period does the Balance Sheet represent?

  Specific point in time
• What are the three key components of the Balance Sheet?

  Assets, Liabilities, Equity
• What does the Cash Flow Statement track over a period?

  Cash movement
• What are the two main types of stakeholders?

  Internal and External
• Match the financial statement with its definition:

  Balance Sheet ↔️ Shows assets, liabilities, equity at a point in time

  Income Statement ↔️ Shows revenue, expenses, profit/loss over a period
• What are the three key financial statements in order?

  Income Statement, Balance Sheet, Cash Flow Statement
• What does the Balance Sheet provide a snapshot of?

  Financial position
• Match the financial statement with its focus:

  Income Statement ↔️ Profitability

  Balance Sheet ↔️ Financial Position

  Cash Flow Statement ↔️ Liquidity and Solvency
• The Income Statement provides a snapshot of financial position at a specific point in time.

  False
• The Balance Sheet covers a specific period of time, such as a quarter or a year.

  False
• What does the Income Statement measure?

  Profitability
• What are the two main financial statements according to the study material?

  Balance sheet, income statement
• Which stakeholders use financial statements for decision-making?

  Internal and external
• The Cash Flow Statement tracks the movement of cash in and out of the business over a period of time.

  True
• What does the Income Statement measure over a period of time?

  Profitability
• Match the financial statement with its purpose:

  Income Statement ↔️ Measures financial performance over a period

  Balance Sheet ↔️ Provides a snapshot of financial position
• Revenue is the money earned from selling goods and services.

  True
• The Balance Sheet covers a specific period, such as a year or quarter.

  False
• Stakeholders are individuals or groups with an interest in a business.


  True
• Which stakeholders use financial statements to assess creditworthiness?

  External stakeholders
• The Income Statement indicates financial performance over a period.

  True
• The Income Statement measures profitability over a period
• The Income Statement shows revenue and expenses
• What does the Balance Sheet indicate about a business's financial position?

  What it owns and owes
• What does the Cash Flow Statement provide insights into?

  Liquidity and solvency
• Internal stakeholders use financial statements to make operational and strategic
• The Cash Flow Statement supports decisions related to working capital management
• The key financial statements are the Income Statement, Balance Sheet, and Cash Flow Statement
• The Cash Flow Statement monitors the movement of cash in and out of the business.

  True
• The Income Statement shows a business's revenue, expenses, and profit/loss over a period of time.


  True
• The Balance Sheet provides a snapshot of a business's financial position at a specific point in time
• The three key financial statements are Income Statement, Balance Sheet, and Cash Flow Statement
• The Cash Flow Statement shows the movement of cash in and out of a business
• The Income Statement measures a business's profitability over a period of time