AFE Quiz 9: Financial Statements

Which financial statement shows a company’s financial position at a specific point in time?

Income Statement
Balance Sheet
Statement of Cash Flows
Statement of Owner’s Equity

Which of the following is NOT a component of the balance sheet?

Assets
Liabilities
Revenues
Owner’s Equity

What does the income statement report?

Assets and liabilities
Revenues and expenses
Cash flows
Owner’s investments

Which financial statement summarizes cash inflows and outflows?

Statement of Owner’s Equity
Income Statement
Statement of Cash Flows
Balance Sheet

Which of the following best describes owner’s equity?

Assets minus liabilities
Liabilities minus assets
Total revenues minus expenses
Cash on hand

Which financial statement would you use to determine if a company was profitable during a period?

Balance Sheet
Statement of Owner’s Equity
Income Statement
Statement of Cash Flows

Which of the following is NOT reported on the statement of cash flows?

Cash from operating activities
Cash from investing activities
Cash from financing activities
Net income

Which statement shows changes in owner’s capital during a period?

Statement of Owner’s Equity
Balance Sheet
Income Statement
Statement of Cash Flows

On which financial statement would you find “Accounts Payable”?

Income Statement
Statement of Cash Flows
Balance Sheet
Statement of Owner’s Equity

Which of the following is true regarding the relationship between the financial statements?

The income statement is prepared after the balance sheet
The ending owner’s equity from the statement of owner’s equity appears on the balance sheet
The cash balance from the balance sheet appears on the income statement
Net income from the income statement is not used in any other statement

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