The Financial Statement That Reports Whether the Business Earned a Profit

question 71

Multiple Choice

The financial statement that reports whether the business earned a profit and also lists the types and amounts of the revenues and expenses is called a(n) :

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

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Definitions:

Three-Component Model

A framework that describes an aspect of analysis or understanding composed of three interrelated elements.

Task Expertise

The specific skills, knowledge, and experience required to effectively perform a particular job or task.

Framing Error

Trying to solve a problem in the context in which it is perceived.

Positive Or Negative Context

Describes the environment or backdrop that either supports a positive outcome, fostering growth and success, or contributes to negative results, leading to challenges and failures.