[1] Financial Statements

Question 1

Cash-flow

Answer 1

Difference between the received and the paid

Question 2

Risk

Answer 2

An event or uncertain situation that will have a +/- effect on the outcome of the project, with a higher risk we demand a higher return

Question 3

5 reports that a company needs

Answer 3

1. Income statement
2. Cash-flow statement
3. Balance sheet
4. Equity statement
5. Notes

Question 4

2 sources for funding companies

Answer 4

1. Liabilities - ask for money (bank loans, suppliers)
2. Equity - own money