Which Statement Is Correct

question 13

Multiple Choice

Which statement is correct?

• A)The income statement tracks the flow in assets and liabilities on the balance sheet.
• B)The balance sheet reports the economic performance of the company.
• C)The income statement reports performance of the company.
• D)The cash flow statement tracks the flow of revenues and expenses in the income statement.

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Definitions:

Corporate Level

Pertains to the highest strategic tier of business decisions and actions that affect the entire organization.

Strategy

A high-level plan to achieve one or more goals under conditions of uncertainty.

Strategic Business Unit Level

A semi-autonomous division or unit of a company that has its own strategy and direction while contributing to the overall success of the corporation.

Nonprofit Organization

An entity that operates for purposes other than making a profit, often focused on social, charitable, or community goals.