The Biggest Difference Between the Income Statement and the Balance

question 72

Multiple Choice

The biggest difference between the income statement and the balance sheet is:

• A)the income statement shows incoming deposits, while the balance sheet shows account balances from the bank.
• B)the income statement is submitted to the government, while the balance sheet is shown to investors.
• C)the income statement is always more accurate than the balance sheet.
• D)the balance sheet represents flows at a point in time, while the income statement reflects flows over a time period.

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Definitions:

Throughput Time

The total time taken from the start to the finish of a production process, including both processing and wait times.

Fill Orders

The process of completing customer requests for goods or services, involving tasks from accepting, processing, and delivering the order.

Delivery Cycle Time

The total time taken from the initiation of a process or order until its completion and delivery to the customer.

Fill Orders

The process of completing a customer's purchase request by preparing and dispatching the ordered goods.