Recap Financial Rports

Cash Flow Statement: Reports ________ _________________ and ___________ under ________________, ________________ and __________________ Activities and the overall change in the Bank Balance.

• cash receipts, cash payments, headings, Operating, Investing, Financing

• cash inflows, cash outflows, categories, Operating, Investing, Trading

• income, expenses, sections, Operating, Financing, Investing

• assets, liabilities, types, Operating, Investing, Borrowing

Income Statement: Reports on ________________ earned & ________________ incurred over the reporting period.

• revenue, expenses

• assets, liabilities

• cash, equity

• profits, losses

Balance Sheet: Reports the __________, ______________ & ___________ ___________ at a particular point in time.

• assets, liabilities, owner's equity

• income, expenses, cash flows

• revenues, costs, profits

• sales, purchases, net income

Any movements of inventory that causes a cash flow will be recorded in _______________ ________ ____________ because it is in the ordinary course of business.

• operating cash flows

• investing cash flows

• financing cash flows

• non-cash transactions

Why would Cost of Sales not be recorded in the Cash Flow Statement? “Cost of Sales” is an expense rather than cash flow item because it involves a ________________ ____ ____________, NOT cash.

• non-cash transaction

• cash payment

• revenue increase

• asset purchase

Which of the following correctly lists the main headings for an Income Statement for a service business?

• Revenue, less Expenses, Net Profit (Loss)

• Assets, Liabilities, Owner's Equity

• Sales, Cost of Goods Sold, Gross Profit

• Income, Deductions, Net Income

Operating activities are cash flows related to...​

• day-to-day trading activities
• the purchase of NCA
• changes in financial structure
• making sales

Investing activities are cash flows related to....​

• day-to-day trading activities
• changes in financial structure
• the purchase or sale of NCA
• sale and purchase of CA

Financing activities are cash flows related to....​

• day-to-day trading activities
• changes in financial structure
• the purchase or sale of NCA
• Purchasing items

Which heading would the following items be reported under in the Income Statement of a service business?

• Cost of Cleaning supplies

• Wages

• Insurance

• Electricity

• Revenues

• Net Profit

• Less expenses

• Net Loss