Financial Statements Analysis
This worksheet covers key concepts of financial statements including balance sheets, income statements, and cash flow statements for Grade 10 Social Studies (Economics).
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Financial Statements Analysis
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Read each question carefully and answer to the best of your ability. Show all your work for calculations.
1. Which financial statement reports a company's assets, liabilities, and owner's equity at a specific point in time?
Income Statement
Balance Sheet
Cash Flow Statement
Statement of Retained Earnings
1. The formula for the accounting equation is Assets = Liabilities + .
2. Revenue minus expenses equals on the income statement.
3. The statement shows how much cash a company has generated and used over a period of time.
1. A high debt-to-equity ratio always indicates a financially unstable company.
True
False
2. The income statement reports financial performance for a period, while the balance sheet reports financial position at a point in time.
True
False
1. Briefly explain the main purpose of a Balance Sheet.
Match the financial statement element with its definition.
1. Assets
a. Obligations owed to other entities
2. Liabilities
b. Resources owned by the company
3. Revenue
c. The portion of profits not distributed to owners
4. Retained Earnings
d. Income generated from normal business operations