The Financial Statement Which Summarizes Operating, Investing, and Financing Activities

question 32

Multiple Choice

The financial statement which summarizes operating, investing, and financing activities of an entity for a period of time is the

• A) Statement of cash flows.
• B) Retained earnings statement.
• C) Statement of financial position.
• D) Income statement.

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Definitions:

ROI Computation

The calculation of Return on Investment, which measures the gain or loss generated on an investment relative to the amount of money invested.

Net Book Value

The value of an asset after accounting for depreciation or amortization found on a company's balance sheet.

Operating Expense

Expenses incurred from a company's operational activities, excluding cost of goods sold, such as selling, general, and administrative expenses.

Minimum Required Rate of Return

The lowest acceptable return on investment for a project or investment, often determined by the cost of capital or desired profit.