Question

Which financial statement below summarizes a company’s earnings?

Multiple Choice

• Statement of Cash Flows

• Cash Flow Forecast

• Balance Sheet

• Profit & Loss Statement

Answer 1

Financial statement that summarizes a company's earning is 'Profit & Loss Statement', as

Statement of cash flows tells about the cash inflow & outflow actually done from various activities such as operating, investing & financing activities.

Cash flow forecast tells about cash inflow & outflow in the near future.

Balance sheet shows the closing position of various assets & liabilities that the company posses, and

Profit & loss statement is the only statement which talks about the company earnings i.e., its revenue, expenses, tax paid, eftc