Which of the Following Statements Regarding Financial Reports Is Not

question 97

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:

Beginning Inventory

The value of goods available for sale at the start of an accounting period, before any purchases are added or sales are subtracted.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated before the next period's inventory is added.

Net Income

The net income of a company once all costs and taxes are subtracted from its revenues.