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-the-month bank statement as it shows the cash inflows and outflows during a specific period, just like a bank statement shows the deposits and withdrawals during a particular month. The income statement shows the revenue and expenses over a specific period, the balance sheet shows a company's assets and liabilities at a specific point in time, the statement of owners' equity shows the changes in equity during a specific period, and the statement of ratio analysis shows the ratios calculated from the financial statements.

Which of the Financial Statements Used by Businesses to Keep