Collaborative practice applying Income Statement construction from journal entry data with scaffolded support
Now that you know the scoreboard, let's watch it move. Every business event changes at least one line on the scoreboard — and often all three. Your job is to predict first, then reveal.
How This Works
- Read each business event carefully.
- Make your prediction about which scoreboard line(s) change.
- Click Reveal to see the before-and-after.
- Check whether your prediction was right. If not, read the explanation.
These events happened during TechStart's first month after Sarah started working with Jennifer Kim. Track how each one ripples through the scoreboard.
Before you reveal the answer, predict: which scoreboard line(s) change?
Predict: which scoreboard line(s) change when Sarah pays these expenses?
Predict: which scoreboard line(s) change when Sarah buys equipment on credit?
1. Why is it important that the three financial statements work together as an integrated system?
2. What is the key difference between Sarah's internal spreadsheets and professional financial statements?
3. In building TechStart's financial storyboard, what should be the first step?
Checkpoint with your teacher: Before moving to independent practice, make sure you can confidently explain:
✓ Core Concepts
- How the three statements work as an integrated scoreboard
- Which scoreboard lines move when revenue, expenses, assets, or liabilities change
- Why profit and cash are not the same thing
✓ Application Skills
- Predicting scoreboard changes before calculating them
- Explaining why a business event affected certain lines and not others
- Reading all three scoreboard lines together to form a business judgment
Ready for the next challenge? In Independent Practice, you'll make bounded business decisions and see their consequences on the scoreboard without guided support.