A Company Reported a Net Loss of $30,000 for Year

question 195

Multiple Choice

A company reported a net loss of $30,000 for Year 1,but its cash balance increased during the year.Which financial statement should management refer to for an explanation of this situation?

• A) balance sheet
• B) income statement
• C) statement of retained earnings
• D) statement of cash flows

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Definitions:

Nonrivalry

The idea that one person’s benefit from a certain good does not reduce the benefit available to others; a characteristic of a public good.

Consumption

The use of goods and services by households, often considered a primary economic indicator.

Rivals

Competitors within a market, vying for the same customers or resources in an effort to achieve economic or strategic advantages.

Market System

(1) An economic system in which individuals own most economic resources and in which markets and prices serve as the dominant coordinating mechanism used to allocate those resources; capitalism. Compare with command system. (2) All the product and resource markets of a market economy and the relationships among them.