Finance Jeopardy Template

Cash flow Statement	Income statement	Balance Sheet
100 What is the cash flow Statement? A cash flow statement shows the movement of cash receipts and cash payments.	100 How do calculate net profit? .Net profit = Gross profit − Expenses	100 What is a balance sheet? A balance sheet is a report that shows the overall financial stability of the business
200 What does liquidity have to do with Cash flow? Liquidity is used to describe whether a business has a good or adequate cash flow.	200 What is a income statement? A income statement is used to help the business to calculate how much profit it has made over a period of time by showing profits or losses, expenses and income	200 What is the balance sheet equation? Assets = Liabilities + Owner's equity A = L + OE
300 Why do businesses allow credit sales when they prefer cash? They need to match their desire for cash with the customer's ability to pay. By allowing customers to purchase on credit, the business will obtain sales it might otherwise lose.	300 What is gross profit and how it is calculated? Gross profit is the term given to the sales less cost of goods sold Gross profit = Sales - costs of goods sold	300 What is a liability and what are some examples of a liability? A Liability are items of debt owed to outside parties and/or other organisations. Examples: - Loans - Mortgages - Credit card debts - Expenses Only need to name 2 to get full points.
400 What are the cash inflows and outflows? Cash inflows - Cash sales - Credit sales when paid - Other income Cash outflows - Payments for stock - Payments for expenses - Payments for non-operating expenses	400 What are the 5 main categories of an income statement? 1. Revenue or income 2. Costs of goods sold 3. Gross profit 4. Expenses 5. Net profit	400 What are assets? What are current and non-current assets? Assets are items of value to the organisation that can be given a monetary value. Current assets are items whose value is expected to be used up, or turned over, within 12 months. Non-current assets are those items that have an expected life of three t
500 Why is a cash flow statement vital for businesses? Cash flow statements are vital for the information they give on the timing of payments and receipt of income, they will help it predict future cash flows and make provisions for payment	500 What is the purpose of a income statement? It helps users of information see exactly how much money has come into the business as revenue, how much has gone out as expenditure and how much has been derived as profit.	500 What are the features of a balance sheet? Its heading denotes that it is a snapshot of the business's financial position at a particular point in time the sum of items on the left-hand side ‘assets’ is equal to, or balances, the sum of the liabilities and owners equity on the right-hand side

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