Understanding Financial Statements - Practice Flashcard

Front

Which financial statement: revenues, expenses, and profit

Back

Income Statement

Front

Which financial statement: track cash

Back

Cash Flow Statement

Front

Which financial statement: assets vs liabilities, equity

Back

Balance Sheet

Front

Anything owned by the business that has monetary value

Back

Asset

Front

Sales revenue minus all expenses

or

Sales revenue minus COGS and operating expenses

Back

Net profit

Front

The direct costs of producing/making the product a business sells

Back

Cost of Goods Sold (COGS)

Front

revenue minus the cost of goods sold

Back

Gross Profit

Front

Which financial statement is best to consult to track a company's revenue increase over the past year?

Back

Income Statement

Front

Which financial statement is best to consult to check if a business has enough assets to cover its long-term debts?

Back

Balance Sheet

Front

Labour, rent, taxes, advertising

Back

Operating expenses