Financial Statements
Which financial statement shows revenues and expenses?
Income Statement
Proverbs 27:23–24 tells us to carefully track our “________.”
flocks/herds/resources
The main purpose of accounting is to __________.
Summarize and communicate financial information
Which statement helps a business know if it’s profitable?
Income Statement
Why is transparency in financial reporting important for businesses?
Transparency builds trust, ensures accuracy, allows wise decisions, reflects integrity.
Which statement is a snapshot of assets, liabilities, and equity?
Balance Sheet
Which scripture says “Whoever can be trusted with little can be trusted with much”?
Luke 16:10
Why do businesses use financial statements?
To make informed decisions, ensure transparency, build trust
Which financial document would an investor care about most?
Cash Flow Statement / Balance Sheet
How does Proverbs 27:23–24 (“Be sure you know the condition of your flocks…”) guide the way businesses should manage resources?
Stewardship: careful attention to resources, accountability, wise planning, awareness that wealth doesn’t last without diligence.
Which statement shows cash inflows and outflows?
Cash Flow Statement
Why is transparency in reporting a biblical principle?
Because it shows honesty, integrity, and accountability to God and others.
What does “time value of money” mean?
Money today is worth more than money tomorrow
Why is honesty in financial reporting important for decision-making?
Because dishonest info leads to poor decisions and dishonors God.
List the three key financial statements and explain what each shows.
Balance sheet = assets/liabilities/equity; Income statement = revenues/expenses; Cash flow = cash inflows/outflows.