If a Company Issues Both a Balance Sheet and an Income

question 64

Multiple Choice

If a company issues both a balance sheet and an income statement with comparative figures from last year,a statement of cash flows:

• A) is no longer necessary;but may be used at the company's option.
• B) should not be issued.
• C) should be issued for the current year only.
• D) should be issued for each period for which an income statement is presented.

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Definitions:

Balance Sheet

An accounting summary showing the assets, liabilities, and owner's equity of a company on a given date.

Retainer Fee

A payment made in advance to hire or retain professional services, ensuring availability over a specific period.

Earned

Income or revenue that has been generated from business activities or investments, substantiated by the delivery of goods or services.

Adjustment

A modification or change made to financial records or statements to correct an error or reflect more accurately the financial position.