The Net Income Figure Appears in All the Following Financial

question 57

Multiple Choice

The net income figure appears in all the following financial statements except the

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

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Definitions:

General Reserve

Funds set aside by a company from its profits for general unspecified future needs or to strengthen the company's financial position.

Pre-acquisition

The period or activities related to acquiring assets or another company before the actual transaction is finalized.

Retained Earnings

Retained earnings reflect the cumulative amount of net income earned by a company that is kept within the company after dividends are paid to shareholders.

AASB 3

Specifies the accounting requirements for business combinations, detailing how an acquirer should recognize and measure the assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree.