The Financial Statement That Reports Whether the Business Earned a Profit

question 159

Multiple Choice

The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:

• A) Statement of cash flows.
• B) Statement of financial position.
• C) Balance sheet.
• D) Income statement.
• E) Statement of owner's equity.

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Definitions:

Insurer

A company which provides insurance policies to individuals or entities, offering protection against financial loss or damage.

Loss or Damage

Terms relating to the harm or detriment suffered by an individual or entity, potentially involving physical goods, financial assets, or personal well-being.

Bailment

A legal relationship in which physical possession of personal property is transferred from one party to another for a specific purpose, but ownership of the property is not transferred.

Written Agreement

a formal and legally binding contract documenting the terms of a deal or agreement between two or more parties.