Which financial statement would indicate whether a business made a net income (net profit) or incurred a net loss for the accounting period? Group of answer choices statement of owner's equity balance sheet statement of cash flows income statement

Which financial statement would indicate whether a business made a net income (net profit) or incurred a net loss for the accounting period? Group of answer choices statement of owner's equity balance sheet statement of cash flows income statement

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Which financial statement would indicate whether a business made a net income (net profit) or incurred a net loss for the accounting period?

Group of answer choices

statement of owner's equity

balance sheet

statement of cash flows

income statement

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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