Q1: 1. Which financial statement provides a snapshot of a company's financial position at a specific point in time?

• A) Income statement
• B) Cash flow statement
• C) Balance sheet
• D) Statement of changes in equity

Q2: 2. Which financial statement shows a company's revenues and expenses over a specific period?

• A) Balance sheet
• B) Cash flow statement
• C) Income statement
• D) Statement of changes in equity

Q3: 3. What does the cash flow statement report?

• A) Assets and liabilities
• B) Cash inflows and outflows
• C) Revenue and expenses
• D) Equity changes

Q4: 4. Which financial statement reports the changes in a company's equity during a specific period?

• A) Balance sheet
• B) Cash flow statement
• C) Income statement
• D) Statement of changes in equity

Q5: 5. What is the main purpose of the income statement?

• A) To show the company's financial position at a point in time
• B) To report cash inflows and outflows
• C) To show the company's revenues and expenses over a period
• D) To report changes in equity

Q6: 6. Which financial statement is also known as the profit and loss statement?

• A) Balance sheet
• B) Cash flow statement
• C) Income statement
• D) Statement of changes in equity

Q7: 7. In which financial statement would you find the total assets and total liabilities of a company?

• A) Income statement
• B) Cash flow statement
• C) Balance sheet
• D) Statement of changes in equity

Q8: 8. Which financial statement helps investors and creditors assess a company's liquidity and solvency?

• A) Balance sheet
• B) Cash flow statement
• C) Income statement
• D) Statement of changes in equity

Q9: 9. What does the cash flow statement include that the income statement does not?

• A) Revenues and expenses
• B) Assets and liabilities
• C) Cash inflows and outflows
• D) Equity changes

Q10: 10. Which financial statement shows how a company's retained earnings have changed over a period?

• A) Income statement
• B) Cash flow statement
• C) Balance sheet
• D) Statement of changes in equity

Q11: 11. A company's balance sheet provides information about its

• A) Profitability
• B) Financial position at a point in time
• C) Cash flows
• D) Revenue and expenses

Q12: 12. Which financial statement is often used by investors to analyze a company's ability to generate profits?

• A) Cash flow statement
• B) Income statement
• C) Balance sheet
• D) Statement of changes in equity

Q13: 13. The statement of changes in equity shows

• A) How a company's assets have changed over a period
• B) How a company's equity has changed over a period
• C) How a company's cash flows have changed over a period
• D) How a company's liabilities have changed over a period

Q14: 14. Which financial statement is prepared first when creating a set of financial statements?

• A) Balance sheet
• B) Cash flow statement
• C) Income statement
• D) Statement of changes in equity

Q15: 15. The income statement helps stakeholders understand a company's

• A) Financial position at a point in time
• B) Cash flows
• C) Profitability over a period
• D) Changes in equity

Q16: 16. Which financial statement provides information about a company's sources and uses of cash during a period?

• A) Income statement
• B) Balance sheet
• C) Statement of changes in equity
• D) Cash flow statement

Q17: 17. A company's balance sheet must always

• A) Balance
• B) Show a profit
• C) Show positive cash flows
• D) Show increasing revenues

Q18: 18. The cash flow statement is divided into which three categories?

• A) Assets, liabilities, equity
• B) Operating, investing, financing
• C) Revenues, expenses, profit
• D) Cash inflows, cash outflows, net cash

Q19: 19. The income statement is also known as the

• A) Statement of financial position
• B) Statement of cash flows
• C) Profit and loss statement
• D) Statement of retained earnings

Q20: 20. Which financial statement is prepared last when creating a set of financial statements?

• A) Cash flow statement
• B) Income statement
• C) Balance sheet
• D) Statement of changes in equity

Q21: 21. The balance sheet equation is

• A) Assets = Liabilities - Equity
• B) Assets + Liabilities = Equity
• C) Assets = Liabilities + Equity
• D) Assets - Liabilities = Equity

Q22: 22. The cash flow statement helps users understand a company's

• A) Profitability
• B) Financial position at a point in time
• C) Liquidity and cash flows
• D) Equity changes

Q23: 23. Which financial statement shows the net income or loss of a company?

• A) Cash flow statement
• B) Balance sheet
• C) Income statement
• D) Statement of changes in equity

Q24: 24. A company's assets are usually listed on the balance sheet in order of

• A) Liquidity
• B) Size
• C) Age
• D) Profitability

Q25: 25. The statement of changes in equity helps users understand how a company's equity has changed due to

• A) Operating activities
• B) Investing activities
• C) Financing activities
• D) All of the above