As a shareholder of the Lindburgh Corporation, Lara wants to know whether the company earned a profit or loss during the past year. Lara can find this information in the company's _____.
A) master budget
B) income statement
C) statement of cash flows
D) articles of incorporation

Question

Quizplus · Accepted Answer

The income statement shows the company's revenue and expenses for a specific period, which ultimately results in either a profit or a loss. The master budget outlines the company's projected revenue and expenses for the upcoming year but does not provide information on past performance. The statement of cash flows shows how much cash the company generates and uses during the period, but it doesn't show whether the company earned a profit or loss. The articles of incorporation are legal documents that establish the company's existence and purpose, and they do not contain financial information.

As a Shareholder of the Lindburgh Corporation, Lara Wants to Know