The Change in Cash on the Comparative Balance Sheets Is

question 51

True/False

The change in Cash on the comparative balance sheets is the "check figure" for the statement of cash flows.

---

Definitions:

Net Income

The total earnings of a company after subtracting all costs and expenses from revenues; also known as net profit.

Revenue Accounts

Accounts that track the income a company generates from its normal business activities, typically from the sale of goods and services to customers.

Expense Accounts

Accounts used to record the consumption of economic benefits during the operational period, contributing to revenue generation.

Income Summary

An account used in the closing process that summarizes revenues and expenses for a period before transferring the balance to retained earnings.