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.

-When exploring the accounting system software,Barb should know that _____ lists revenues and expenses and shows the amount of profit her business has made for a specified period of time.
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.

-When exploring the accounting system software,Barb should know that _____ lists revenues and expenses and shows the amount of profit her business has made for a specified period of time.
A)income statement
B)balance sheet
C)cash flow statement
D)depreciation statement

Quizplus · Accepted Answer

The income statement lists revenues and expenses and shows the amount of profit a business has made for a specified period of time. The balance sheet reports a company's assets, liabilities, and equity at a specific point in time. The cash flow statement shows the inflows and outflows of cash during a specific period. The depreciation statement shows the decrease in value of an asset over time.

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