Which of the Following Statements Regarding Financial Reports Is Not

question 127

Multiple Choice

Which of the following statements regarding financial reports is not correct?

• A)A balance sheet contains assets,liabilities,and stockholders' equity information.
• B)An income statement shows revenues and expenses.
• C)A statement of stockholders' equity reports revenues,net income,and dividends information.
• D)A statement of cash flows shows cash inflows and outflows from operating,investing,and financing activities.

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Definitions:

Outstanding Check

A check that has been written and recorded in the issuer's accounting records but has not yet been cashed or cleared by the bank.

Bank Reconciliation

Bank reconciliation is the process of matching and comparing the account records held by a company with the bank statements to ensure accuracy and consistency in financial records.

Petty Cash Fund

A small amount of cash kept on hand in a business for minor expenses.

Delivery Expenses

Costs incurred by a company in distributing its products to customers, including shipping fees and handling charges.