Which Accounting Report Is Specifically Designed to Answer the Question

question 58

Multiple Choice

Which accounting report is specifically designed to answer the question 'What profit was earned in a particular period?'

• A) cash flow statement
• B) balance sheet
• C) income statement
• D) all of the above

---

Definitions:

Self-Disclosure

The act of sharing one's personal thoughts, feelings, or experiences with others, which can deepen relationships and foster closer bonds.

Gross Profit

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Net Sales

The total revenue generated from goods or services sold, after deducting returns, allowances for damaged or missing goods, and discounts.

Cost of Goods Sold

Direct costs attributable to the production of the goods sold by a company, including materials and labor costs.