Which is not a basic financial statement?
Answer and Explanation:
balance sheet. The elements of the financial statements are the assets, liabilities, revenue, gain, losses, etc. The balance sheet is a financial statement not an element of the financial statement.
Off-balance sheet (OBS) assets are assets that don't appear on the balance sheet. OBS assets can be used to shelter financial statements from asset ownership and related debt. Common OBS assets include accounts receivable, leaseback agreements, and operating leases.
Trial balance is not part of financial statements.
The audit report is not one of the four basic financial statements.
Correct answer : Option (e) Statement of Cash Flows is the correct answer because the basic financial statements include Income Statement, Statement of Retained Earnings, Balance Sheet, and Statement of Cash Flows, but does not include the Statement of Changes in Assets.
For-profit businesses use four primary types of financial statement: the balance sheet, the income statement, the statement of cash flow, and the statement of retained earnings.
Financial statements show how a business operates. It provides insight into how much and how a business generates revenues, what the cost of doing business is, how efficiently it manages its cash, and what its assets and liabilities are.
The income statement includes revenue, expenses, gains and losses, and the resulting net income or loss. An income statement does not include anything to do with cash flow, cash or non-cash sales.
The statement of retained earnings is NOT one of the three primary financial statements.
What are the three kinds of basic financial statements?
The income statement, balance sheet, and statement of cash flows are required financial statements. These three statements are informative tools that traders can use to analyze a company's financial strength and provide a quick picture of a company's financial health and underlying value.
Answer and Explanation:
A revenue statement is not a basic financial statement.
The balance sheet, income statement, and cash flow statement each offer unique details with information that is all interconnected. Together the three statements give a comprehensive portrayal of the company's operating activities.
The four financial statements (in order of preparation) are the income statement, statement of retained earnings (or statement of shareholders' equity), balance sheet, and statement of cash flows.
What are the four financial statements? Balance Sheet, Income Statement, Statement of Cash-flows, and Statement of Stockholder's Equity. The balance sheet is a snapshot in time of a company's assets, liabilities, and stockholder's equity.
The major elements of the financial statements (i.e., assets, liabilities, fund balance/net assets, revenues, expenditures, and expenses) are discussed below, including the proper accounting treatments and disclosure requirements.
There are four basic types of financial statements used to do this: income statements, balance sheets, statements of cash flow, and statements of owner equity.
1 Answer. Ledger Account is not a part of financial statement of a company.
- Step 1: gather all relevant financial data. ...
- Step 2: categorize and organize the data. ...
- Step 3: draft preliminary financial statements. ...
- Step 4: review and reconcile all data. ...
- Step 5: finalize and report.
Answer and Explanation:
A trial balance is not a financial statement; it is just a report prepared by the firms to check the accuracy of the recording and classification of accounting transactions.
Which one of the following is not a tool in financial statement analysis?
The correct answer to the given question is b. Circular analysis. There is no method called circular analysis in financial statement analysis. This is a method that can be used in statistics, however.
Answer and Explanation:
The heading of the balance sheet is composed of its three major components which are Assets, Liabilities and Stockholders' equity. Cash is reported under the heading of assets, while the gross profit is a subtotal amount which could be found in the Income Statement and not the Balance Sheet.
The income statement will be the most important if you want to evaluate a business's performance or ascertain your tax liability. The income statement (Profit and loss account) measures and reports how much profit a business has generated over time. It is, therefore, an essential financial statement for many users.
The income statement should always be prepared before other statements because it provides an overview of the company's revenue and expenses during a specific period. This information is used in preparing other reports such as balance sheets and cash flow statements.
Income statement: This is the first financial statement prepared. The income statement is prepared to look at a company's revenues and expenses over a certain period, such as a month, a quarter, or a year.
