The Income Statement Shows Whether or Not a Business Can

question 237

True/False

The income statement shows whether or not a business can generate enough cash to pay its liabilities.

---

Definitions:

Tax Laws

The legal regulations governing the imposition, administration, and collection of taxes on individuals, corporations, and other entities by governmental organizations.

Limit Communications

The practice of restricting the flow of information within an organization or between individuals, often for the purpose of security or efficiency.

Defined-Contribution Plan

Retirement plan in which the employer sets up an individual account for each employee and specifies the size of the investment into that account.

Retirement Income

The financial income one receives after retiring from active employment, which can come from pensions, savings, investments, and government programs.