Which one of the following is not an important financial statement? (2024)

Which one of the following is not an important financial statement?

Answer and Explanation:

A revenue statement is not a basic financial statement.

What are the 4 important financial statements?

Which of the following is not a financial statements?

Explanation: Trial Balance is not a financial statement. Trial Balance is a list of closing balances of ledger accounts on a certain date and is the first step towards the preparation of financial statements. It is usually prepared at the end of an accounting period to assist in the drafting of financial statements.

Which of the following statement is not one of the financial statements?

Explanation for correct answer:

Statement of owner's investments is not one of the financial statements.

What is the least important financial statement?

While the cash flow statement is considered the least important of the three financial statements, investors find the cash flow statement to be the most transparent. That's why they rely on it more than any other financial statement when making investment decisions.

Which is not one of the 4 types of financial statements?

The audit report is not one of the four basic financial statements.

What are the 3 most important financial statements?

The income statement, balance sheet, and statement of cash flows are required financial statements. These three statements are informative tools that traders can use to analyze a company's financial strength and provide a quick picture of a company's financial health and underlying value.

What are the five 5 basic financial statements?

Here's why these five financial documents are essential to your small business. The five key documents include your profit and loss statement, balance sheet, cash-flow statement, tax return, and aging reports.

What are the 5 types of financial statements?

Which is not one of the three main financial statements?

Answer and Explanation:

The correct option is (c) Retained earnings statement. So, we can see that options (a), (b) and (d) are part of financial statement but not the retained earnings statement.

Which of the following is not part of the income statement?

Dividends will not be found on the income statement. Dividends represent a distribution of a company's net income. They are not an expense and they do not need to be paid.

Why financial statements are not enough?

Answer and Explanation: The examination of only the balance sheet and income statement is not adequate in evaluating a firm because it leaves out an analysis of cash flow. The balance sheet is a snapshot of the company's assets, liabilities and shareholders' equity at one point in time.

What is the most important financial statement quizlet?

The Cash Flow Statement is the most important single statement because it tells you how much cash a company is generating. The Income Statement is misleading because it includes non-cash revenue and expenses and excludes cash spending such as Capital Expenditures.

What is the most important number on a financial statement?

Net income

Net income is sometimes referred to as a company's bottom line because it's found at the bottom of its income statement. It's important to know a company's net income because it shows profitability, but it's also important to calculate other figures, such as earnings per share (EPS).

Which of the following are examples of a financial statement except?

Correct answer : Option (e) Statement of Cash Flows is the correct answer because the basic financial statements include Income Statement, Statement of Retained Earnings, Balance Sheet, and Statement of Cash Flows, but does not include the Statement of Changes in Assets.

What is the most important of the three financial statements?

A financial statement segments into three divisions; Balance sheet, income statement, and cash flow statement. Among these 3 major financial statements, the most important financial statement is the income statement.

Which is not one of the main financial statements used in business?

Answer and Explanation:

The statements of activities are not one of the statements that a company is mandated to prepare. The statements of activities would indicate the activities that the firm has been engaged in.

Which is the most important financial statement?

The income statement will be the most important if you want to evaluate a business's performance or ascertain your tax liability. The income statement (Profit and loss account) measures and reports how much profit a business has generated over time.

What is a 3 statement financial statement?

The balance sheet, income statement, and cash flow statement each offer unique details with information that is all interconnected. Together the three statements give a comprehensive portrayal of the company's operating activities.

What is not reported on the income statement?

The correct answer is (b) Extraordinary items are not reported in an income statement under IFRS. The International Financial Reporting Standards (IFRS) do not provide for gains or losses that are irregular or infrequent to be reported separately on the income statement.

Which of the following is not an operating item on the income statement?

Answer and Explanation:

The interest expense and cost of goods sold are not reported as operating expenses on the income statement.

Which of the following is not included in the statement of operations?

The Statement of Operations doesn't include a subtotal for EBITDA, which is used for financial analysis like a valuation. EBITDA is calculated by adjusting earnings before interest and taxes (EBIT) by adding back depreciation and amortization expenses.