When a Company Has No Reportable Non-Operating Activities, Its Income

question 221

True/False

When a company has no reportable non-operating activities, its income from operations is simply labeled net income.

---

Definitions:

Statement of Cash Flows

A financial statement that shows the cash inflows and outflows for a company over a specified period, classified into operating, investing, and financing activities.

Financial Position

The status of the assets, liabilities, and equity of an entity at a given point in time, as outlined on the balance sheet.

Financial Position

A snapshot of the assets, liabilities, and equity of a business at a given point in time, illustrating the company's financial health.

Changes in Equity

Adjustments in a company’s equity during a specific period due to factors like earnings, dividends, or changes in share capital.