Which Financial Statement Reports the Results of a Business's Operations

question 129

Multiple Choice

Which financial statement reports the results of a business's operations?

• A) income statement
• B) statement of changes in equity
• C) balance sheet
• D) statement of cash flows

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Definitions:

Overapplied

In cost accounting, refers to a situation where the allocated manufacturing overhead is more than the actual overhead incurred.

Underapplied

A situation in which the allocated or applied costs in accounting are less than the actual costs incurred.

Standard Costing System

An accounting method that applies predetermined costs to measure the cost of goods sold and performance.

Continuous Improvement

An ongoing effort to improve products, services, or processes by making incremental improvements over time or breakthrough improvements all at once.