Resources Online Training Understanding Financial Statements and Accounting Name* First Last Email* 1. It is important to have separate accounts for your business and your personal finances in order to stay organized.* True False 2. Businesses need to have a seamless transaction system to make the buying process as easy as possible for their customers.* False True 3. The Income Statement, or Profit and Loss Statement, is used to calculate net income by tracking* Total revenue and total expenses Total revenue, total costs of goods sold, and total expenses Total revenue, assets, and total expenses Fixed overhead and variable expenses 4. Income statements reflect net income for a period of 90 days or one quarter.* True False 5. The balance sheet will reflect the financial health of a business at any point in time.* False True 6. Assets are broken into two categories* Current assets and Liquid assets Leased assets and Purchased assets Current assets and Fixed assets Rental/Loaner assets and Fixed assets 7. Liabilities are broken into two categories-current and long term liabilities. Current liabilities are debts that must be satisfied within __________.* 1 year 45 days 6 months 90 days 8. Assets = Equity + Liabilities* True False 9. Equity = Assets – Liabilities* False True 10. What are the three reports that this video overviews?* Profit and Loss Statement, Operations Statement, and Cash Flow Statement Income Statement, Operations Statement, and Investment Cash Flow Profit and Loss Statement, Balance Sheet, and Operations Cash Flow Income Statement, Balance Sheet, and Cash Flow Statement This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.