The Financial Statement That Reports Whether the Business Earned a Profit

question 171

Multiple Choice

The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:

• 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:

Private Company

A business entity owned by private individuals or entities and not publicly traded on a stock exchange.

Public Company

A company whose shares are traded freely on a stock exchange, making its financial records and activity reports publicly available.

Financial Statements

Financial statements are formal records of the financial activities and position of a business, person, or other entity, including the balance sheet, income statement, and statement of cash flows.

Canada Revenue Agency

The federal agency responsible for the administration of tax laws for the Government of Canada and for most provinces and territories.