Which Financial Statement Reconciles Net Income with Net Cash Flows

question 9

Multiple Choice

Which financial statement reconciles net income with net cash flows from operating activities?

• A)Balance sheet
• B)Statement of retained earnings
• C)Statement of cash flows
• D)Income statement

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Definitions:

Scienter

A legal term denoting knowledge on the part of a person who commits a wrongful act, especially in securities law, where it involves knowledge of the act's deceitful or fraudulent nature.

Malpractice Action

A legal action filed against a professional person for failure to act in accordance with prevailing professional standards.

Properly Perform

To execute or carry out a task or duty correctly, efficiently, and up to the expected standards or specifications.

Generally Accepted Accounting Principles

Generally Accepted Accounting Principles (GAAP) refer to a common set of accounting rules, standards, and procedures used in preparing financial statements in the United States.