The Financial Statement That Reports Whether the Business Earned a Profit

question 71

Multiple Choice

The financial statement that reports whether the business earned a profit and also lists the types and amounts of the revenues and expenses is called a(n) :

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

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Definitions:

Taxable Income

The portion of an individual’s or corporation's income that is subject to taxes by the government.

Withholding Allowance

A claim made by an employee on a W-4 form to reduce the amount of income tax withheld from their paycheck.

Taxable Income

The portion of an individual's or corporation's income that is subject to taxation by the government, after allowances, exemptions, and deductions.

Withholding Allowance

Withholding allowance refers to an exemption that reduces how much income tax an employer deducts from an employee's paycheck.