Financial Statements Explained

Test your understanding of the key financial statements discussed in the video

Business mixed 8 Questions Video Quiz
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Q1 Beginner 1 pts

What is the main purpose of the Income Statement? Video Reference:
"The Income Statement basically answers the following questions: How did the company perform througho..."

Timestamp: 0:30

Q2 Intermediate 2 pts

What are the two primary drivers of net income on the Income Statement? Video Reference:
"Before we begin, you must bring to mind that the two primary drivers of net income are REVENUE and E..."

Timestamp: 2:00

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Q3 Beginner 1 pts

True or False: Depreciation and amortization expenses are recorded on the Income Statement. Video Reference:
"Depreciation refers to assets of physical nature, such as property, plants, or machinery. Amortizati..."

Timestamp: 4:00

Q4 Intermediate 2 pts

Which of the following are considered operating expenses on the Income Statement? Video Reference:
"These are the ongoing costs incurred for running the business. For example, every organization gener..."

Timestamp: 3:00

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Q5 Advanced 3 pts

What is the difference between EBIT and Net Income on the Income Statement? Video Reference:
"If we deduct the depreciation and amortization expense from the EBITDA figure, we obtain the Operati..."

Timestamp: 5:00

Q6 Beginner 1 pts

True or False: The Balance Sheet is a 'snapshot' of a company's financials at a certain date. Video Reference:
"The Balance Sheet is a statement that shows what the company owns and owes. It is a 'snapshot' of a ..."

Timestamp: 6:00

Q7 Intermediate 2 pts

Which of the following are key steps in preparing a Balance Sheet budget? Video Reference:
"To do that, we will divide the process into three simple steps: First, you need to find out the majo..."

Timestamp: 6:00

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Q8 Advanced 3 pts

What is the relationship between the three main financial statements (Income Statement, Balance Sheet, Cash Flow Statement)? Video Reference:
"Budgeting revolves around three main statements – the Income Statement, the Balance Sheet, and the C..."

Timestamp: 0:30

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