Which one of these is not a key financial statements?
Answer and Explanation:
A revenue statement is not a basic financial statement.
Explanation: Trial Balance is not a financial statement. Trial Balance is a list of closing balances of ledger accounts on a certain date and is the first step towards the preparation of financial statements. It is usually prepared at the end of an accounting period to assist in the drafting of financial statements.
Explanation for correct answer:
Statement of owner's investments is not one of the financial statements.
The audit report is not one of the four basic financial statements.
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.
The statement of retained earnings is NOT one of the three primary financial statements.
- Balance sheets.
- Income statements.
- Cash flow statements.
- Statements of shareholders' equity.
Answer and Explanation: 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.
Answer and Explanation:
The statements of activities are not one of the statements that a company is mandated to prepare. The statements of activities would indicate the activities that the firm has been engaged in.
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.
Which of the following is not included on an income statement?
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.
They are: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders' equity. Balance sheets show what a company owns and what it owes at a fixed point in time. Income statements show how much money a company made and spent over a period of time.
For-profit primary financial statements include the balance sheet, income statement, statement of cash flow, and statement of changes in equity. Nonprofit entities use a similar but different set of financial statements.
All four accounting financial statements accurately portray the company's overall financial situation. The income statement records all revenues and expenses. The balance sheet provides information about assets and liabilities. The cash flow statement shows how cash moves in and out of the business.
Here's why these five financial documents are essential to your small business. The five key documents include your profit and loss statement, balance sheet, cash-flow statement, tax return, and aging reports.
- Income statement.
- Cash flow statement.
- Statement of changes in equity.
- Balance sheet.
- Note to financial statements.
Answer: B) Balance sheet.
The balance sheet is not a basic element of financial statements. It is one of the financial statements that reports assets, liabilities and equity. Losses and revenue are elements of an income statement.
- 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.
Net Income & Retained Earnings
Net income from the bottom of the income statement links to the balance sheet and cash flow statement. On the balance sheet, it feeds into retained earnings and on the cash flow statement, it is the starting point for the cash from operations section.
Final answer:
The Statement of Activities is not a required financial statement for public companies, which are instead required to produce a Balance Sheet, a Statement of Cash Flows, and an Income Statement.
What is on a balance sheet?
A balance sheet is a financial statement that reports a company's assets, liabilities, and shareholder equity. The balance sheet is one of the three core financial statements that are used to evaluate a business. It provides a snapshot of a company's finances (what it owns and owes) as of the date of publication.
Trial balance refers to a part of a financial statement that records the final balances of the ledger accounts of a company. This statement comprises two columns: debit and credit. An organisation prepares a trial balance at the end of the accounting year to ensure all entries in the bookkeeping system are accurate.
The income statement presents revenue, expenses, and net income. The components of the income statement include: revenue; cost of sales; sales, general, and administrative expenses; other operating expenses; non-operating income and expenses; gains and losses; non-recurring items; net income; and EPS.
A set of financial statements includes two essential statements: The balance sheet and the income statement.
Accordingly, a change in an accounting policy from one that is not generally accepted by GAAP to one that is generally accepted by GAAP is considered an error correction, not a change in accounting principle.
