The Annual Report Contains All of the Following Financial Statements

question 41

Multiple Choice

The annual report contains all of the following financial statements except

• A)income statement.
• B)statement of changes in long-term financing.
• C)statement of cash flows.
• D)balance sheet.
• E)statement of retained earnings.

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Definitions:

Profits

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to maintain the operation.

Re-Invested

Capital or earnings that are put back into a business or investment to support growth or generate additional revenue.

Company

An entity engaged in commercial, industrial, or professional activities, either as a single individual or a group of people structured as a corporation, partnership, or sole proprietorship.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up.