Quiz: Do you understand the Three Financial Statements? | AD SME

Quiz: Do you understand the Three Financial Statements? 

By: Abu Dhabi SME Hub
Accounting

The Profit & Loss, the Cash Flow Statement, and the Balance Sheet are three core statements intricately linked to one another.

Every public company issues them quarterly and annually to provide an overview of its financial health and ability to meet short-term and long-term financial obligations.

So what is the difference between the three different financial statements, and do you understand how you should use them? 

Take the quiz to test your knowledge!

What is not covered in the P&L?

1 / 7

Why is the cash flow statement important to your business?

2 / 7

What differentiates the cash flow statement from the P&L?

3 / 7

What does the balance sheet include at any point in time?

4 / 7

True or False? The cash flow statement can help a business owner or investors understand what cash flow issues the company may potentially deal with.

5 / 7

What is the correct balance sheet formula?

6 / 7

True or False? Equity, added together with the Liability total, should match or balance with your total assets.

7 / 7

You might also like