Which of the Following Is Not Considered a Business (Source)

question 166

Multiple Choice

Which of the following is not considered a business (source) document?

• A) Time card
• B) Purchase order
• C) Sales invoice
• D) Schedule listing all the insurance policies in force

Identify and differentiate between various financial analysis characteristics such as liquidity, profitability, marketability, and solvency.

Understand the significance of other comprehensive income in financial reporting.

Recognize the reporting requirements for discontinued operations.

Understand the concepts of pro forma income and its exclusions.

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Definitions:

Debt Ratio

A leverage ratio that measures the proportion of a firm’s total assets that is acquired with borrowed funds.

Current Liabilities

Debts or obligations that a company needs to pay within one fiscal year or within its normal operating cycle.

Statement of Cash Flows

A financial document that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Financial Statement

A formal document outlining the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.