Which of the basic financial statements is best used to answer the question, "How profitable is the business?"
A) Balance sheet
B) Statement of shareholder's equity
C) Income statement
D) Accounts receivable aging schedule
Who owns the retained earnings of a public firm?
A) The IRS
B) Common stockholders
C) Bondholders
D) Preferred stockholders
Which of the following represents an attempt to measure the earnings of the firm's operations over a given time period?
A) Balance sheet
B) Cash flow statement
C) Income statement
D) None of the above
Stock that is repurchased by the issuing company is called
A) paid in capital.
B) treasury stock.
C) retained capital.
D) par value stock.
Which of the basic financial statements is best used to answer the questions "What does the company own and how is it financed?"
A) Balance sheet
B) Statement of shareholder's equity
C) Income statement
D) Cash flow statement
