Which of the Following Statements Is NOT Correct About the Financial

question 155

Multiple Choice

Which of the following statements is NOT correct about the financial statements?

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

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Definitions:

Comparative Advantage

An economic principle stating that countries or entities gain and benefit from trade when they specialize in producing goods for which they have a lower opportunity cost than their trading partners.

Production

The process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (the output).

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive in the market.

Consumer Surplus

The gap between the price consumers are ready to offer for a good or service and the effective amount they spend on it.