Answered: The financial statement that reports…

The financial statement that reports revenues and expenses is called thea. income statement.b. statement of retained earnings.c. statement of cash flows.d. balance sheet.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 17MC: Which statement is most directly affected by a change to net income? A. balance sheet B. income...

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Question

The financial statement that reports revenues and expenses is called the
a. income statement.
b. statement of retained earnings.
c. statement of cash flows.
d. balance sheet.

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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