A question asked by stockholders is, "How much profit did the company make?" What should the stockholder examine to get the most information that will help evaluate the answer to this question?
a. The balance sheet, because retained earnings represents current profits
b. The statement of cash flows, as cash inflows and outflows represents current profits
c. The income statement, since it shows the revenues and expenses for the period
d. The economic resources of the company
c
You might also like to view...
Briefly describe the circumstances in which the yardstick approach would be particularly useful for organizing your proposal, and provide an example of a report that would benefit from this organizational approach
What will be an ideal response?
The concept of "customer satisfaction" is broader than the concept of "customer experience."
Answer the following statement true (T) or false (F)
A liquidating dividend is usually paid when a company is going out of business or reducing its operations
Indicate whether the statement is true or false
A retailer considering undertaking significant additional debt to finance a regional expansion needs to carefully evaluate its _____
a. collection period b. quick ratio c. accounts payable to net sales d. return on net sales