Which of the Following Financial Statements Is Used to Report

question 218

Multiple Choice

Which of the following financial statements is used to report the economic resources,debt,and overall financial position of a company?

• A) income statement
• B) balance sheet
• C) statement of cash flows
• D) statement of owner's equity

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Definitions:

Cash Flows

The movement of money into and out of a business, reflecting the company's operational, investing, and financing activities.

Net Worth

The total assets minus total liabilities of an individual or company, representing the owner's equity.

Financing Activities

Transactions related to funding the company, including issuing equity, borrowing loans, or paying dividends.

Investing Activities

Investing activities involve the purchase and sale of long-term assets and other investments, not including cash equivalents, reflected in the cash flow statement of a company.