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:

Income Rises

An increase in the amount of money received by individuals or entities, typically through wages, dividends, or investments.

Elastic Demands

Demand for a product or service that significantly changes in response to price changes, indicating high price sensitivity among consumers.

Luxuries

Luxuries refer to goods or services that are considered non-essential but desirable and are often associated with higher quality and price points than necessities.

Price Elastic Demand

Describes a situation where the quantity demanded of a good or service significantly changes in response to a change in its price.