A Company Reported Net Income of $150,000 for Year 1,but

question 84

Multiple Choice

A company reported net income of $150,000 for Year 1,but its cash balance decreased by $40,000.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:

Equivalent Measure

A unit of measurement that corresponds to equivalent amounts in different measurement systems.

Milliliters

A metric unit of volume equal to one thousandth of a liter, commonly used to measure liquids in medical, laboratory, and cooking contexts.

Milliliters

A measurement of capacity in the metric system, equivalent to 0.001 liters, frequently utilized for quantifying liquid substances.

Liter

A unit of volume in the metric system, equal to 1,000 cubic centimeters or approximately 0.26 gallons.