An Itemized Financial Statement of the Income and the Expenses

question 84

Multiple Choice

An itemized financial statement of the income and the expenses of a company's operations is called the

• A) Statement of financial ratios.
• B) Balance sheet.
• C) Cash flow statement.
• D) Assets and liabilities statement.
• E) Profit and loss statement.

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Definitions:

Shares

Financial instruments that represent ownership in a company or financial asset, often entitling the shareholder to a portion of the profits.

Control

The power to govern the financial and operating policies of an entity so as to obtain benefits from its activities, often through ownership of a majority of voting rights.

IFRS 3

An international financial reporting standard that provides guidance on accounting for business combinations, requiring acquired assets and liabilities to be recorded at fair value.

Business Combinations

Transactions or events in which one entity gains control over one or more other entities, often involving mergers and acquisitions.