WGU D196 FINANCIAL STATEMENTS OVERVIEW
QUESTIONS AND CORRECT ANSWERS
what are the three primary financial statements? - Answers - he balance sheet, the
income statement, and the statement of cash flows.
balance sheet - Answers - reports the amount of net income earned by a company
during a period, with annual and quarterly income statements being the most common.
The statement of cash flows - Answers - reports the amount of cash collected and paid
out by a company in operating, investing, and financing activities.
the statement of retained earnings - Answers - shows the accumulated profits or losses
of a business since the business started
Form 10-K - Answers - A form required by the SEC for businesses to report a
comprehensive summary of financial performance, including the three primary financial
statements.
Form 10-Q - Answers - the quarterly report that publicly traded companies must file with
the SEC
Assets - Answers - economic resources that are owned or controlled by a company
balance sheet - Answers - a summary of the financial position of a company at a
particular date
Liabilities - Answers - obligations to pay cash, transfer other assets, or provide services
to someone else
Accounts Payable - Answers - Amount owed as a result of the purchase of goods and
services on credit
Unearned Revenue - Answers - Amount owed in services or products (not money) to a
customer who paid in advance
basic accounting equation - Answers - Assets=Liabilities+Owners' Equity
classified balance sheet - Answers - A balance sheet that distinguishes between current
and long-term assets
Current assets - Answers - cash and other assets that are expected to be converted to
cash within a year
QUESTIONS AND CORRECT ANSWERS
what are the three primary financial statements? - Answers - he balance sheet, the
income statement, and the statement of cash flows.
balance sheet - Answers - reports the amount of net income earned by a company
during a period, with annual and quarterly income statements being the most common.
The statement of cash flows - Answers - reports the amount of cash collected and paid
out by a company in operating, investing, and financing activities.
the statement of retained earnings - Answers - shows the accumulated profits or losses
of a business since the business started
Form 10-K - Answers - A form required by the SEC for businesses to report a
comprehensive summary of financial performance, including the three primary financial
statements.
Form 10-Q - Answers - the quarterly report that publicly traded companies must file with
the SEC
Assets - Answers - economic resources that are owned or controlled by a company
balance sheet - Answers - a summary of the financial position of a company at a
particular date
Liabilities - Answers - obligations to pay cash, transfer other assets, or provide services
to someone else
Accounts Payable - Answers - Amount owed as a result of the purchase of goods and
services on credit
Unearned Revenue - Answers - Amount owed in services or products (not money) to a
customer who paid in advance
basic accounting equation - Answers - Assets=Liabilities+Owners' Equity
classified balance sheet - Answers - A balance sheet that distinguishes between current
and long-term assets
Current assets - Answers - cash and other assets that are expected to be converted to
cash within a year
