Which Financial Statement Shows Whether the Business Earned a Profit

question 131

Multiple Choice

Which financial statement shows whether the business earned a profit or loss, and also lists the types and amounts of the revenues and expenses?

• A)Balance sheet.
• B)Statement of cash flows.
• C)Income statement.
• D)Statement of changes in equity.
• E)Statement of financial position.

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Definitions:

Listed Entities

Companies whose stocks are traded on a public stock exchange, making their shares available for purchase by the general public.

Voluntarily Chooses

A decision made freely and without coercion, often referring to actions taken at the discretion of an individual or organization.

Public Companies

Companies that generally have a large number of issued shares and widespread ownership.

Segment Profit or Loss

The financial performance of a distinct part of a company that engages in business activities from which it may earn revenues and incur expenses, resulting in its own net profit or loss.