If Stockholders Want to Know How Money Flowed into and Out

question 2

Multiple Choice

If stockholders want to know how money flowed into and out of the company, what financial statement would they use?

• A) Income statement
• B) Statement of cash flows
• C) Balance sheet
• D) Statement of retained earnings

---

Definitions:

Corporate Executives

High-level managers or officers within a corporation responsible for making strategic decisions, guiding direction, and ensuring operations align with company goals.

Profit Centers

Divisions or branches of a business that are directly responsible for generating its income and are evaluated based on their profitability.

Sales

The transaction where a product is swapped for financial compensation; engaging in the act of selling an item.

Costs

Costs related to producing goods or services, comprising materials, labor, and overhead costs.