The Financial Statement That Reports Whether the Business Earned a Profit

question 159

Multiple Choice

The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:

• A) Statement of cash flows.
• B) Statement of financial position.
• C) Balance sheet.
• D) Income statement.
• E) Statement of owner's equity.

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Definitions:

Yield Curve

A graph that shows the relationship between interest rates and bonds of different maturities, usually interpreted as an indicator of future economic conditions.

Bond Portfolio Manager

An individual or team responsible for making investment decisions about a portfolio of bonds in order to achieve specified investment objectives.

Surrounding Maturity

This term appears to be less commonly used or specific; however, in context, it could refer to factors or conditions existing or occurring around the time a financial instrument reaches its maturity.

Convexity

An indicator of how the bond price's sensitivity to interest rate changes varies with the bond's yield, reflecting adjustments in the bond's duration.