Which Financial Statements Are Prepared for a Period of Time

question 121

Multiple Choice

Which financial statements are prepared for a period of time?

• A)Income statement,statement of retained earnings,balance sheet and statement of cash flows.
• B)Balance sheet.
• C)Income statement,statement of retained earnings,and statement of cash flows.
• D)Income statement and balance sheet.
• E)Statement of retained earnings and statement of cash flows.

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Definitions:

Payout Ratio

A financial metric indicating the percentage of earnings paid to shareholders in the form of dividends, reflecting a company's dividend sustainability.

Dividends

Distributions from a company to its shareholders, typically sourced from the firm's earnings.

Net Income

The total profit of a company after all revenues and gains are added together and all expenses and losses are subtracted.

Profit Margin

A financial ratio that shows the percentage of sales revenue that remains as profit after all costs and expenses are deducted.