Barb's Bakery
Barb Bowman fell into the baking business. It used to be a hobby. She made and sold cakes and cookies for birthdays and family events in the neighborhood and for friends' parties. Now, having opened the bakery, the business has taken off and Barb is wondering what sort of records she needs to keep.

-Barb will need all of these commonly used financial statements EXCEPT
A)income statement.
B)balance sheet.
C)cash flow statement.
D)depreciation statement.

Question

Barb's Bakery
Barb Bowman fell into the baking business. It used to be a hobby. She made and sold cakes and cookies for birthdays and family events in the neighborhood and for friends' parties. Now, having opened the bakery, the business has taken off and Barb is wondering what sort of records she needs to keep.

-Barb will need all of these commonly used financial statements EXCEPT
A)income statement.
B)balance sheet.
C)cash flow statement.
D)depreciation statement.

Quizplus · Accepted Answer

Depreciation statements are not considered common financial statements. They are a subset of financial statements and are mainly used for tax purposes to calculate and report on the depreciation of assets over their useful lives. Therefore, Barb will not need a depreciation statement among the commonly used financial statements.

Barb's Bakery Barb Bowman Fell into the Baking Business. It Used to Used