The Financial Statement That Reports Whether the Business Earned a Profit

question 171

Multiple Choice

The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:

• A)Balance sheet.
• B)Statement of retained earnings.
• C)Statement of cash flows.
• D)Income statement.
• E)Statement of financial position.

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Definitions:

Lack of Precision

The state of being vague, not exact or accurate in measurement, description, or execution.

Recognition Memory

the ability to recognize previously encountered events, objects, or people, an important aspect of the memory system.

Planning Behavior

The process of thinking about and organizing the activities required to achieve a desired goal.

Multi-Step Directions

Instructions that involve following two or more stages to reach an objective.