Ch3 - FS: Interrelations and Construction

Question 1

Financial statements prepared for the period are:

Answer 1

1. Income statement (also called statement of comprehensive income or statement of profit or loss)
2. Cash flow statement or statement of cash flows
3. Statement of changes in equity

Question 2

Financial statements prepared as of the cut off date (end of the period) are:

Answer 2

1. Balance sheet (statement of financial position)

Question 3

Left side of T account is called

Answer 3

DEBIT side

Question 4

Right side of T account is called

Answer 4

CREDIT side

Question 5

Which account links statement of financial position and statement of comprehensive income?

Answer 5

RETAINED EARNINGS account (within equity)

Question 6

Which account links statement of financial position and statement of cash flows?

Answer 6

CASH ACCOUNT