Scenario - Brininger Enterprises
Rapid City,South Dakota has been home to Brininger Enterprises since 1984.This company is recognized around the world for its superior cutlery and currently ranks as number three within the industry.In 2011,Brininger Enterprises recorded gross sales of over sixteen million dollars.From its gross sales,the company claimed net profits of four million dollars.Brininger Enterprises is quite proud of its performance.It realizes the company's financial records truly show this organization is doing something right.
-Brininger Enterprises maintains accurate and thorough accounting records.Which piece of the company's accounting records would be needed to identify what cash monies were received and what cash was paid out by the company?

Question

Quizplus · Accepted Answer

The statement of cash flows shows the inflows and outflows of cash for a specific period, which would include all the cash received and paid out by the company. The income statement shows revenue, expenses, and net income or loss, but does not necessarily reflect actual cash transactions. The balance sheet shows the company's assets, liabilities, and equity at a specific point in time, but does not show cash transactions. The retained earnings statement shows changes in the company's retained earnings account, but does not necessarily reflect cash received or paid out. The petty cash fund is a separate account used for small cash transactions, but would not necessarily include all cash transactions for the company.