The Amount of Net Income Is Transferred from ________ to ________

question 185

Multiple Choice

The amount of net income is transferred from ________ to ________.

• A) the income statement; the statement of owner's equity
• B) the balance sheet; the statement of cash flows
• C) the balance sheet; the income statement
• D) the income statement; the statement of expenditures

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Definitions:

Net Income

The profit of a company after all operating expenses, taxes, and interest are subtracted from total revenue.

Quality of Income Ratio

A financial metric that assesses the ability of a company to translate its earnings into cash, providing insight into financial health and operational efficiency.

Cash Flow

The net amount of cash and cash-equivalents being transferred into and out of a business, used to assess the company's liquidity, financial flexibility, and overall financial health.