Basic Finance

Also called as statement of comprehensive income, details the revenues earned and the expenses incurred by a company

• Balance Sheet

• Income Statement

• Statement of Changes in Owners Equity

• Statement of Cash flow

Shows the assets, liabilities and owners equity of a business. It is also called statement of financial position

• Balance Sheet

• Income Statement

• Statement of Owners Equity

• Statement of cash flow

It is a statement of the sources and uses of the company's cash/funds.

• Balance Sheet

• Income Statement

• Statement of Owners Equity

• Statement of cash flow

What is the basic accounting equation

• Assets = Liabilities - Owners Equity

• Owners Equity = Liabilities + Assets

• Assets = Liabilities + Owners Equity

• Assets + Owners Equity = Liabilities

Asset and expenditure accounts are increased on the debit side

• True

• False

The normal balance of expense is credit

• True

• False

The normal balance of liability is credit (cr)

• True

• False

Cash is an example of current assets

• True

• False

Income taxes payable is reflected in the balance sheet

• True

• False

Accounts receivable is an example of non-current assets

• True

• False