Question

The financial report that represents the operating activities of a company, including revenue, costs, taxation, and depreciation, during a certain period of time is known as

The financial report that represents the operating activities of a company, including revenue, costs, taxation, and depreciation, during a certain period of time is known as Pick a choice: cash flow statement profit and loss statement Operating statement Operating cash flows Income statement

Answer 1

The financial report that represents the operating activities of a company, including revenue, costs, taxation, and depreciation, during a certain period of time is known as:

profit and loss statement

Cash flow statement - is a statement of cash or fund inflows and outflows of the business. It shows how changes in balance sheet accounts and income affect cash and cash equivalents. It includes operating as well as financial and investing activities.Operating activities refer to the production, sales,delivery of the company’s product and collecting payments from its customers. Investing activities are purchases or sales of assets (land, building, equipment, marketable securities, etc. ), loans made to suppliers or received from customers, and payments related to mergers and acquisitions.Financing activities include the inflow of cash from investors like banks and shareholders, and the outflow of cash to shareholders as dividends. But it does not include non cash activities like depreciation thus this cant be the correct choice.

Operating statement - This represents company's earning from operating income and expenses and is a part of profit and loss statement that shows profits before non-operating activities like interest, tax.

Operating cash flows - It shows the cash flow of the business from its operating activities and if the business is generating sufficient cash to continue it operations. It is the operating activities section of main cash flow which shows where cash has been used, how cash is generated. It starts with net profit/loss derived from profit/loss statement and then make cash adjustments. It excludes depreciation hence it is not the correct answer.

Income statement shows income and expenses of the company and is also referred as Profit or loss statement but the only difference is it is more comprehensive form of profit and loss statement used to determine earning per share of the company.