Which of the following is not a basic components of financial statements? (2024)

Which of the following is not a basic components of financial statements?

Explanation: The balance sheet is not a basic element of financial statements.

Which of the following is not a basic component of financial statements?

Answer and Explanation:

The balance sheet is a financial statement not an element of the financial statement.

Which is not a basic financial statement?

Answer and Explanation:

A revenue statement is not a basic financial statement.

Which of the following are the 4 basic financial statements?

For-profit businesses use four primary types of financial statement: the balance sheet, the income statement, the statement of cash flow, and the statement of retained earnings. Read on to explore each one and the information it conveys.

What are the 5 components of financial statement?

The major elements of the financial statements (i.e., assets, liabilities, fund balance/net assets, revenues, expenditures, and expenses) are discussed below, including the proper accounting treatments and disclosure requirements.

Which of the following is not a component of the financial system?

Expert-Verified Answer. Among the options provided, the component of the financial system that is NOT included is the leasing market. The correct answer is option C. The financial system comprises various components that facilitate the flow of funds and financial transactions.

Which of the following is not one of the four basic financial statements?

Solution Summary: The author explains that the Audit Report is not one of the four basic financial statements. The balance sheet, income statement, statement of retained earnings, and cash flow statement are the other options.

What is not one of the three financial statements?

The statement of retained earnings is NOT one of the three primary financial statements.

What are basic financial statements?

The three main types of financial statements are the balance sheet, the income statement, and the cash flow statement. These three statements together show the assets and liabilities of a business, its revenues, and costs, as well as its cash flows from operating, investing, and financing activities.

Which of the following are basic elements of financial statements?

There are five elements of a financial statement: Assets, Liabilities, Equity, Income, and Expenses.

What are the 4 basic financial statements in order of preparation?

Item #1: The income statement is prepared over a period of time. Item #2: The balance sheet is prepared as of a period of time. Item #3: The statement of retained earnings is prepared over a period of time. Item #4: The statement of cash flows is prepared over a period of time.

What are the three kinds of basic financial statements?

The income statement, balance sheet, and statement of cash flows are required financial statements. These three statements are informative tools that traders can use to analyze a company's financial strength and provide a quick picture of a company's financial health and underlying value.

What are the three 3 main components of the statement of financial position?

The main elements of a statement of financial position are assets, liabilities and equity.

What are the components of a financial account?

Financial account components include direct investment, portfolio investment, and reserve assets broken down by sector. The financial account involves financial assets such as gold, currency, derivatives, special drawing rights, equities, and bonds.

What are the components of the income statement?

The income statement presents revenue, expenses, and net income. The components of the income statement include: revenue; cost of sales; sales, general, and administrative expenses; other operating expenses; non-operating income and expenses; gains and losses; non-recurring items; net income; and EPS.

Which of the following are not functions of a financial system?

Reducing unemployment and helping speculators to bet on price movements are not functions of a financial system.

Which of the following is not important in financial planning?

Ensuring excess availability of funds at the right time is not an objective of financial planning.

Which of the following elements of financial statements is not a component of comprehensive income?

Answer and Explanation:

Distribution to owners is a dividend or drawings, which is not recorded as part of comprehensive income.

Which of the following is not a part of the basic accounting equation?

Basic accounting equation is Assets= Capital + Liabilities, hence Revenues is not a part of the basic accounting equation.

Which of the following are major financial statements?

There are 3 major financial statements to understand: profit and loss statement. balance sheet. cash flow statement.

Which of the following is not included in the financial statements of the company?

Trial balance is not part of financial statements.

How are the three main financial statements connected?

Net income from the bottom of the income statement links to the balance sheet and cash flow statement. On the balance sheet, it feeds into retained earnings and on the cash flow statement, it is the starting point for the cash from operations section.

How many basic elements are in financial statements?

The 10 elements are: (1) assets, (2) liabilities, (3) equity, (4) investments by owners, (5) distributions to owners, (6) revenues, (7) expenses, (8) gains, (9) losses, and (10) comprehensive income. The 10 elements of financial statements defined in SFAC 6 describe financial position and periodic performance.

What are the components of the balance sheet?

A balance sheet typically includes the following items: assets (current assets and non-current assets), liabilities (current liabilities and non-current liabilities), and equity (common stock and retained earnings).

What is the basis of preparing financial statements?

In order to meet their objectives, financial statements are prepared on the accrual basis of accounting.