A Company Reported Net Income of $150,000 for 2014, but Its

question 37

Multiple Choice

A company reported net income of $150,000 for 2014, but its cash balance decreased by $40,000. Which financial statement should management refer to for an explanation of this situation?

• A)Balance Sheet
• B)Income Statement
• C)Statement of retained Earnings
• D)Statement of Cash Flows

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Definitions:

Tend-and-befriend Response

A stress response model proposing that people, particularly women, seek social alliances and support rather than fight or flight.

Positive Emotions

Feelings that are perceived as pleasant or desirable, such as joy, love, and gratitude, which can contribute to one's overall well-being and happiness.

Optimal Level

The most advantageous or effective state or degree of something for a specific purpose or outcome.

Fight-or-flight Response

A physiological reaction to perceived harm or threat, mobilizing the body for fighting or fleeing.