Financial statement do not consider _________________.assets expressed in monetary termsliabilities expressed in monetary termsonly assets expressed in non-monetary termsassets and liabilities expressed in non-monetary terms (2024)

FAQs

What do financial statements do not consider? ›

The primary focus of financial reporting is information about earnings and its components. Hence financial statement do not consider assets and liabilities expressed in non-monetary terms.

Trial balance is not part of financial statements.

Assets and liabilities expressed in monetary terms.

Answer and Explanation:

The elements of the financial statements are the assets, liabilities, revenue, gain, losses, etc. The balance sheet is a financial statement not an element of the financial statement.

Non-financial factors surrounding the business.

Examples may include environmental factors that impact either revenue sources or raw materials, or market demand that may impact the perception of the products or services offered.

Financial Statements

Excluding items often refers to items removed from the calculation of earnings per share numbers. Such items may include one-time or extraordinary expenses or income that will not occur again in the future.

The item in the list that is not a core financial statement is c. The Trial Balance. Core financial statements include the Balance Sheet, the Income Statement, and the Cash Flow Statement. The Balance Sheet presents an organization's assets, liabilities, and net assets at a specific point in time.

Answer and Explanation:

A revenue statement is not a basic financial statement.

Off-balance sheet items, such as operating leases and accounts receivable factoring, aren't directly visible on the balance sheet but can be found in the footnotes of financial statements and still impact a company's finances.

Examples of non-financial assets include tangible assets, such as land, buildings, motor vehicles, and equipment, as well as intangible assets, such as patents, goodwill, and intellectual property.

What are the 4 components of the financial statements? ›

Financial statements can be divided into four categories: balance sheets, income statements, cash flow statements, and equity statements.

Answer and Explanation: B) Distributions to owners. Distribution to owners is a dividend or drawings, which is not recorded as part of comprehensive income.

Correct answer : Option (e) Statement of Cash Flows is the correct answer because the basic financial statements include Income Statement, Statement of Retained Earnings, Balance Sheet, and Statement of Cash Flows, but does not include the Statement of Changes in Assets.

Reputation of the firm, morale of employees, and prestige in the community. These data cannot be found by looking or reading the company's financial statements since these are intangible data, which could be gathered only through researching and observing.

Financial analysis does not include assessing future performance and risk because financial statements are based on past performance. The evaluation of company performance and financial condition includes evaluation of past and current performance, current financial position, and future performance and risk.

Financial Statements Do Not Cover Non-Financial Issues

The financial statements do not address non-financial issues, such as the environmental attentiveness of a company's operations, or how well it works with the local community. A business reporting excellent financial results might be a failure in these other areas.