Elisandra works in her company's finance department and is preparing a statement that details all of the company's revenues and expenses from various departments and product lines. Elisandra is preparing a cash-flow statement.

Question

Quizplus · Accepted Answer

Elisandra is preparing an income statement, not a cash-flow statement. An income statement details a company's revenues and expenses, while a cash-flow statement shows how changes in the balance sheet accounts and income affect cash and cash equivalents.

Elisandra Works in Her Company's Finance Department and Is Preparing