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:

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interests and potentially the right to vote on corporate matters.

Board of Directors

A group of individuals elected by the shareholders of a company to oversee and make decisions on major issues and policies.

Primary Market

The market where securities are issued for the first time, allowing corporations to raise capital from investors.

Securities

Marketable securities embodying equity in publicly-operated corporations, claims of debt owed by governments or firms through bonds, or opportunities for ownership via options.