DETAILED ANSWERS|LATEST
UPDATE!!!!2025/2026|GUARANTEED PASS|GRADED
Financial Statements - ANSWER A set of reports that show how a business is
performing financially and all business activities related to running the business.
Balance sheet - ANSWER A financial statement that reports a business's assets,
liabilities, and equity at a specific point in time.
Income statement - ANSWER Also called the profit and loss (P&L) statement, it shows
the business's revenues and expenses during a particular period.
Statements of cash flows - ANSWER Reports the sources and uses of cash by a
business.
Statement of equity - ANSWER Reports the changes in a business's equity, from the
opening balance to the end of the period balance.
Which area of an income statement can indicate a good marketing or sales process but
doesn't necessarily mean the business is profitable? - ANSWER Revenue
Cash Inflow - ANSWER Activities that bring income to the business.
For example, cash sales, receiving money for invoices from accounts receivable, or a capital
infusion from the business owner.
1
UPDATE!!!!2025/2026|GUARANTEED PASS|GRADED
Financial Statements - ANSWER A set of reports that show how a business is
performing financially and all business activities related to running the business.
Balance sheet - ANSWER A financial statement that reports a business's assets,
liabilities, and equity at a specific point in time.
Income statement - ANSWER Also called the profit and loss (P&L) statement, it shows
the business's revenues and expenses during a particular period.
Statements of cash flows - ANSWER Reports the sources and uses of cash by a
business.
Statement of equity - ANSWER Reports the changes in a business's equity, from the
opening balance to the end of the period balance.
Which area of an income statement can indicate a good marketing or sales process but
doesn't necessarily mean the business is profitable? - ANSWER Revenue
Cash Inflow - ANSWER Activities that bring income to the business.
For example, cash sales, receiving money for invoices from accounts receivable, or a capital
infusion from the business owner.
1
