INTUIT ACADEMY EXAMINING FINANCIAL
STATEMENTS
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.
Cash Outflow - Answer -Activities that send cash away from the business.
For example, making vendor payments from accounts payable, making a loan payment,
paying taxes, or owner draws from business profits.
Operating Activities - Answer -From the statement of cash flow, includes all cash
inflows and outflows related to operating a business.
Investing Activities - Answer -Part of the statement of cash flows that includes all cash
inflows and outflows related to purchasing fixed assets or investing in another business
or venture.
Financing Activities - Answer -Part of the statement of cash flows that includes owner's
draws or pain-in capital.
Net cash increase/decrease - Answer -From the statement of cash flow, total cash
difference between the beginning and ending of the period from operating, investing,
and financing sections.
STATEMENTS
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.
Cash Outflow - Answer -Activities that send cash away from the business.
For example, making vendor payments from accounts payable, making a loan payment,
paying taxes, or owner draws from business profits.
Operating Activities - Answer -From the statement of cash flow, includes all cash
inflows and outflows related to operating a business.
Investing Activities - Answer -Part of the statement of cash flows that includes all cash
inflows and outflows related to purchasing fixed assets or investing in another business
or venture.
Financing Activities - Answer -Part of the statement of cash flows that includes owner's
draws or pain-in capital.
Net cash increase/decrease - Answer -From the statement of cash flow, total cash
difference between the beginning and ending of the period from operating, investing,
and financing sections.
