Which of the financial statements used by businesses to keep track of their financial affairs is the most similar to an ordinary person's end-of-the month bank statement?
A) Income statement
B) Balance sheet
C) Statement of cash flows
D) Statement of ratio analysis
E) Statement of owners' equity

Question

Quizplus · Accepted Answer

The statement of cash flows is the most similar to an ordinary person's end-of-month bank statement because it shows cash inflows and outflows from operating, investing, and financing activities. This is similar to a bank statement which shows deposits, withdrawals, and transfers during a certain period. The income statement and balance sheet provide different information about a company’s financial performance and position, while the statement of owners’ equity and statement of ratio analysis focus on specific aspects of the business.

Which of the Financial Statements Used by Businesses to Keep