Which One of the Following Items Is Not Generally Used

question 171

Multiple Choice

Which one of the following items is not generally used in preparing a statement of cash flows?

• A) Adjusted trial balance
• B) Comparative balance sheets
• C) Current income statement
• D) Additional information

Calculate and interpret the turnover ratio within the context of ROI.

Recognize the effects of new investments on a company's overall financial performance.

Apply the concepts of ROI and residual income in real-world divisional performance evaluation scenarios.

Understand the concept of residual income and how it's calculated for a division.

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Definitions:

Journal Entry

A record in accounting that represents every single transaction made by a company, detailing the financial activities.

Debits

Entries on the left side of a double-entry bookkeeping system that increase asset or expense accounts, or decrease liability, equity, or revenue accounts.

Debits

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet or in an individual's bank account.

Assets

Resources owned or controlled by a person or company, expected to bring future economic benefits.