On Which of the Four Major Financial Statements Would You

question 46

Multiple Choice

On which of the four major financial statements would you find the increase in inventory?

• A)Balance sheet
• B)Income statement
• C)Statement of cash flows
• D)Statement of retained earnings

---

Definitions:

Inflation

How fast the general price for goods and services climbs, lessening the power to purchase.

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers.

Financial Statements

Papers that summarize a corporation's financial status, featuring the balance sheet, income statement, and cash flow statement.

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and a portion of profits through dividends.