How to Prepare the Basic Balance Sheet and Statement of Cash Flows


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question 1 of 3

The term GAAP stands for_____.

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1. Which of the financial statements reports all accounts that a company has and the account balances?

2. What is the balance sheet equation?

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About This Quiz & Worksheet

This quiz and worksheet combo will help you understand two of the four types of financial reports that make up the financial statements. These practice questions will test your understanding of when to use which type of financial report and the characteristics of these two types of reports.

Quiz & Worksheet Goals

In these assessments, you'll be tested on:

  • The meaning of GAAP
  • When to use a balance sheet or a cash flow statement
  • The components of a cash flow statement
  • The equation for a balance sheet

Skills Practiced

This quiz and worksheet will allow you to test your skills in the following areas:

  • Reading comprehension - ensure that you draw the most important information from the related accounting lesson
  • Defining key concepts - ensure that you can accurately define main phrases, such as GAAP, balance sheets, and cash flow statements
  • Information recall - access the knowledge you've gained regarding the balance sheet equation

Additional Learning

See the lesson entitled How to Prepare the Basic Balance Sheet and Statement of Cash Flows to review these additional objectives:

  • Define liabilities and assets
  • Review owner's equity
  • Understand financing activities