ENT-Financial Record Keeping 1

• Entrepreneurship
• Secondary Education

What is another term for gross profit?

Chapter 20.2:

Preparing Financial Statements

Pages 471-479

Objectives

Classify the different financial statements used by businesses.

Analyze a cash flow statement.

Evaluate the income statement and the balance.

Income Statement

An income statement is a report of the revenue, expenses, and net income or loss for the accounting period.

What are the different kinds of financial statements?

What is this statement?

Compare the two statements. Give their differerences.

Answer here

Why does the service business have one revenue account?

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If a business has more money coming in than going out, it has a positive cash flow. If more money goes out than comes in, it has a negative cash flow. Which situation does this statement illustrate?

What is how much cash your business
took in and where the cash went?

1. Operating expenses
2. Balance Sheet
3. Cash Flow Statement
4. Income Statement

Balance sheet

How much equity does the owner have in this business?

Income Statement

What is the difference between an income statement and a balance sheet?

The balance sheet should satisfy which equation.

What are the important points of the lesson?