Q9. Information provided by financial statements
Which information does each financial statement provide?
A9.
(1) Balance sheet
a. Information about assets, liabilities and stockholders’ equity
b. Information about current assets and current liabilities
c. Information about the liquidity and solvency of an entity
(2) Income statement
a. Information about sales revenue, other revenue, operating expenses, non-operating expenses
b. Information about net income (profit or loss)
c. Information about the profitability of an entity
(3) Statement of cash flows
a. Information about cash flows from operating activities
b. Information about cash flows from investing activities
c. Information about cash flows from financing activities
d. Information about the entity’s capacity to generate cash flows
(4) Statement of changes in equity
a. Information about the increases and decreases in each of the components of equity
b. Information about dividends
© AccountingInfo.com