Prahbat is looking at a financial statement produced by Iron Corp. The statement lists the company's annual revenues, its expenses, and its profit. Prahbat is looking at a(n)
A) cash flow statement.
B) revenue-expense statement.
C) balance sheet.
D) budget.
E) income statement.

Question

Quizplus · Accepted Answer

The financial statement that lists a company's annual revenues, expenses, and profit is an income statement. Therefore, the correct choice is E. A cash flow statement would show the inflows and outflows of cash, a balance sheet would show the company's assets, liabilities, and equity at a specific point in time, and a budget would be a plan for future revenues and expenses.

Prahbat Is Looking at a Financial Statement Produced by Iron