A Company Reported a Net Loss of $30,000 for the Current

question 47

Multiple Choice

A company reported a net loss of $30,000 for the current year, yet its cash balance increased during the year. Which financial statement should management refer to for an explanation of this situation?

• A)Balance Sheet
• B)Income Statement
• C)Statement of Retained Earnings
• D)Statement of Cash Flows

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Definitions:

Exergonic Reaction

A chemical reaction that releases energy to the surroundings, typically in the form of heat.

Free Energy

A thermodynamic quantity that represents the amount of energy in a system available to do work, often symbolized as G.

Lower Entropy

A state or condition of decreased disorder or randomness in a system, often associated with increased order or organization.

Oxidation

A chemical reaction involving the loss of electrons or an increase in oxidation state by a molecule, atom, or ion.