Which of the Following Financial Statements Is Used to Report

question 4

Multiple Choice

Which of the following financial statements is used to report cash receipts for services provided?

• A) income statement
• B) balance sheet
• C) statement of retained earnings
• D) statement of cash flows

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Definitions:

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, which is used to increase the account.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, based on the accounting equation.

Financial Statement

Reports that summarize the financial performance, position, and cash flows of a business for a specific period.

Account

An account is a record within an accounting system that is used to store financial transactions of a particular type, such as assets, liabilities, equity, revenues, and expenses.