🔗 1. Financial Statements Match
Match the **Reporting Term** (Blue border) with its **Definition** (Gray border).
❓ 2. Reporting Concepts Comprehension
Read the questions about fundamental financial concepts, then choose the correct answer.
1. The **Income Statement** reports which financial metric over a period of time?
2. In financial analysis, the term **Liquidity** primarily refers to:
3. What is the fundamental accounting equation represented by the **Balance Sheet**?
📝 3. Budgeting & Metrics Sentence Completion
Click a **Word** in the bank to select it (it turns blue), then click the blank space () where you want to place it. Click a filled space to clear it.
Word Bank:
1. The method recognizes revenue and expenses when they are earned or incurred, not when cash is received.
2. The quarterly **Financial** estimates our expected revenue and costs for the next three months.
3. We must stick to the strict **Operational** set for administrative costs this year.
4. The measures how much net income is generated as a percentage of revenue.
5. The company has decided to reinvest the **Prior Year's** back into research and development.
🎯 4. Discussion & Practice
Use these questions to practice the new vocabulary in conversation.
- How can a company improve its **Working Capital**?
- What are the key differences in how the **Accrual** and cash methods report transactions?
- Which of the three **Financial Statements** do you think is the most important for investors? Why?
- What assumptions do you need to make when preparing a **Financial Forecast**?