Financial Statements
What is the purpose of an income statement?
Shows revenues, expenses, and profit over time
What is one risk of using too much debt?
Bankruptcy/insolvency
What is the first step of the accounting cycle?
Analyze Transactions or Record Transactions
Fill in the blank: Money today is worth ______ than the same amount in the future.
More
Matthew 25:21 praises faithfulness with ______ things.
small
Which financial statement shows a company’s assets and liabilities?
Balance Sheet
What is the difference between secured and unsecured debt?
Secured has collateral, unsecured doesn’t
Which equation must always balance?
Accounting Equation: Assets = Liabilities + Equity
If $100 today grows to $105 in a year, what’s the interest rate?
5%
How can generosity be considered a form of financial stewardship?
It uses resources to serve God and others
Cash flow statements track three main activities — name one.
Operating, Investing, Financing
Interest rate represents the cost of ___________.
Borrowing money
What is a T-account used for?
Recording debits and credits
What is “present value”?
The current value of future money, discounted
Give one example of how biblical wisdom can guide borrowing decisions.
Avoid excessive debt, don’t exploit others, etc.
True/False: Net income always equals cash on hand.
False
Biblical connection — Proverbs 22:7 says “the borrower is __________.”
Servant to the lender
In the cycle, what comes after adjusting entries?
Preparing Financial Statements
Why do businesses prefer receiving cash sooner rather than later?
Because money can be invested which earns a return or interest.
In your own words: How does being faithful with money prepare you for future opportunities?
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