Which of the Following Represents an Attempt to Measure the Net

question 56

Multiple Choice

Which of the following represents an attempt to measure the net results of the firm's operations (revenues versus expenses) over a given time period?

• A) Balance Sheet
• B) Statement of Cash Flows
• C) Income Statement
• D) Sources and Uses of Funds Statement

---

Definitions:

Bonus

Additional compensation given to employees as a reward for their performance, often beyond their regular earnings.

Capital Balances

Refers to the amount of money that the owners of a company have invested in the business or retained from profits over time.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenues.

Closing the Revenue

The process of finalizing all revenue accounts and transferring their balances to permanent accounts at the end of an accounting period.