Financial Statements Are an Example of Feedback Controls

question 4

True/False

Financial statements are an example of feedback controls.

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Definitions:

Revenues Earned

Income generated from normal business operations and activities, often from the sale of goods or services to customers.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operating costs, from its total revenue.

Statement Of Cash Flows

A financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company, showing how the company's operations, investing, and financing activities affect cash.

Investing Activity

Transactions involving the purchase or sale of long-term assets and investments, a section in the cash flow statement.