The Statement of Cash Flows and the Statement of Income

question 59

True/False

The Statement of Cash Flows and the Statement of Income both measure a company's performance.

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Definitions:

Tax Withheld

The portion of an employee's wages that is not included in their paycheck because it is sent directly to the government as partial payment of their annual income tax.

W-2

A form used in the United States to report wages paid to employees and the taxes withheld from them to the Internal Revenue Service (IRS).

1099 Form

An IRS tax form used to report various types of income other than wages, salaries, and tips.

Untaxed Income

Income that is not subject to taxation by the authorities.