Finance Foudnations B
Unit 7 Financial Statements
Define the following terms: Owner’s Equity, Cash Flows, net income, dividends
Why do businesses use financial statements?
What are the four general purpose financial statements for companies?
The _________________ statement is prepared using the ______________ and
_______________ accounts.
The _______________ __________ is created using the assets and ________________ accounts.
Explain what is in the statement of cash flows.
Define cash equivalents. Use google to find an example of cash equivalents.
List the ten elements of financial statements:
The sub- classifications of these elements are called ________________.
Give an example of a sub-classification for the first two listed.
List four different ways that financial statements are used.
List the individuals who use the financial information provided on the statements.
What is the significance of liquidity and profitability?
What is an annual report and what type of businesses prepare them?
What are the key components of an annual report?