Liquidity | Theme 2

Question 1

Income statement

Answer 1

Measures the businesses performance usually over 1 year

Question 2

Statement of financial position

Answer 2

A snapshot of the business’ assets and liabilities

Question 3

Cash flow statement

Answer 3

Shows how the business has generated and disposed of cash and liquid funds during the period under review

Question 4

Non-current assets

Answer 4

Are long term resources that will be used repeatedly over a period of time e.g., land, property, vehicles

Question 5

Intangible assets

Answer 5

Non-physical assets e.g., customer lists