Financial analysts look to the statement of earnings to determine which of the following?
A) whether the company has generated proﬁts from operations
B) if the company has invested too much cash in its inventory
C) whether the company has generated suﬃcient cash to pay its bills
D) if the company is collecting its receivables on time

Question

Quizplus · Accepted Answer

The statement of earnings, also known as the income statement, primarily shows a company's revenues, expenses, and profits over a specific period, indicating whether the company has generated profits from its operations.

Financial Analysts Look to the Statement of Earnings to Determine