The Financial Statement Which Summarizes Operating, Investing, and Financing Activities

question 26

Multiple Choice

The financial statement which summarizes operating, investing, and financing activities of an entity for a period of time is the

• A) retained earnings statement.
• B) income statement.
• C) statement of cash flows.
• D) statement of financial position.

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Definitions:

Long-Term Liabilities

Financial obligations of a business that are due more than one year in the future.

Current Liabilities

Debts or obligations that are due to be paid within one year or within the normal operating cycle.

Discount

A reduction applied to the regular price of products or services.

Note Payable

A written agreement in which one party promises to pay another party a certain amount of money at a specific future date or on demand.