The Net Income Shown on the Income Statement Also Appears

question 123

Multiple Choice

The net income shown on the income statement also appears on the:

• A)balance sheet and operations statement.
• B)statement of retained earnings.
• C)statement of cash flows,using the indirect method.
• D)B and C.

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Definitions:

Insourcing

The practice of assigning tasks or projects to personnel within the organization instead of outsourcing to external entities.

Offshoring

The practice of relocating business processes or production to a foreign country to reduce costs.

Subcontracts

Secondary contracts that are assigned by a primary contractor to third parties to perform part of the work originally contracted.

Prime Contractor

The main contractor who has a direct contract with the client and takes overall responsibility for the execution of a project, subcontracting parts of the work to others as necessary.