BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Profit ratio
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Income statement
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Cash flow statement
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Balance sheet
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Detailed explanation-1: -Therefore, the Operating ratio is not an example of profitability ratios.
Detailed explanation-2: -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.
Detailed explanation-3: -The correct option is (c) Retained earnings statement.
Detailed explanation-4: -For-profit businesses use four primary types of financial statement: the balance sheet, the income statement, the statement of cash flow, and the statement of retained earnings.
Detailed explanation-5: -Net income also impacts cash, which is reported at the bottom of the cash flow statement, which then flows into the top of the balance sheet. This is how net income links all three of the primary financial statements.