Financial statements (AQA GCSE Business): Quizzes
📚Quizzes
Practise the questions
12 questions from this quiz
ShowHide
Practise the questions
12 questions from this quiz
What is the legal status of financial statements for businesses?
What is the legal status of financial statements for businesses?
Essential documents by law
How is the statement of financial position best described?
How is the statement of financial position best described?
A snapshot at one moment in time
What does the income statement show?
What does the income statement show?
Performance over a period of time
What do investors primarily want to know from financial statements?
What do investors primarily want to know from financial statements?
If the business can pay dividends
Why do lenders such as banks need financial statements?
Why do lenders such as banks need financial statements?
To assess loan repayment ability
Why does HMRC need to see financial statements?
Why does HMRC need to see financial statements?
To calculate tax owed by business
What defines current assets?
What defines current assets?
Convertible to cash within 12 months
What is the liquidity order mnemonic for current assets?
What is the liquidity order mnemonic for current assets?
ICE (Inventories, Receivables, Cash)
Which current asset is the most liquid?
Which current asset is the most liquid?
Cash
What are receivables?
What are receivables?
Amounts owed by credit customers
What are current liabilities?
What are current liabilities?
Debts payable within 12 months
What does negative net current assets indicate?
What does negative net current assets indicate?
Warning sign of cash flow problems