Financial statement analysis Questions And Answers 2022/2023

Balance Sheet - Answer - provides a snapshot of a company's financial position as of a certain date Assets - Answer - items of value such as inventory and equipment are financed with liabilities(debt) or stockholders' equity(owners' shares) Assets= liabilities + stockholders' equity Income Statement - Answer - reports the company's profitability during an accounting period Revenues - Answer - amounts recieved from customers for products sold or services provided Expenses - Answer - costs incurred to produce revenues Net Income - Answer - Revenues-Expenses Statement of Stockholders equity - Answer - reports if the earnings of this accounting period are distributed as dividends or retained in the business as retained earnings. Also reports amounts paid by stockholders to purchase common stock and preferred stock Retained earnings(ending) - Answer - Retained earnings + Net Income - (Dividends) Contributed capital (ending) - Answer - Contributed capital, beginning + issuance of shares - (Repurchase to retire shares) Statement of cash flows - Answer - reports cash inflows + cash outflows during an accounting period Accounts recievable - Answer - amounts to be recieved in the future from customers Accounts Payable - Answer - amounts that the corporation must pay to suppliers in the future Stockholders' Equity - Answer - portion of assets the owners are free and clear of any liabilities Contributed Capital - Answer - amounts paid by stockholders to purchase common stock and preferred stock Retained Earnings - Answer - Net income earned by the company since its incorporation and not yet distributed as dividends