Which of the Following Financial Statements Would Be Most Useful

question 235

Multiple Choice

Which of the following financial statements would be most useful if an analyst wants to know the profitability of a company?

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

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Definitions:

Business Opportunities

Prospects for creating new business ventures or expanding existing ones, potentially leading to increased profit and growth.

Surveying

The technique, profession, and science of determining the terrestrial or three-dimensional positions of points and the distances and angles between them.

Earned Income

Revenue generated from the sale of goods and services, as opposed to donations or grants.

Revenue

The total income generated by a company from its activities, before any expenses are subtracted.