1If an investor was interested in knowing how profitable a company had been over

Question

1If an investor was interested in knowing how profitable a company had been over the past year, what financial statement would they look at? Income Statement b) Statement of Retained Eamings c) Balance Sheet d) Statement of Cash Flows 22)A company approaches a bank in order to obtain a loan. The loan officer is interested in the liquidity of the company's assets and the company's ability to pay back the loan. Which financial statement is most important in making this loan decision? a) Income Statement b Statement of Retained Earnings c) Balance Sheet d) Statement of Cash Flows )A company purchased inventory by paying cash. In which of the special journals would this transaction be a) Cash receipts Cash disbursements c) Purchases d) Sales 24) A company recorded depreciation expense. In which journal would this transaction be recorded? a) Cash disbursements journal b) Purchases journal O Sales Journal d) General Journal

Explanation / Answer

21)correct option is "Income statement

Income statement shows the summary of revenue earned and expense incurred as well as net income earned or loss incurred.

22)correct option is C"

Balance sheet shows the financial position that is tOTal asset ,liabilites and equity

23)correct option is "B"

Inventory purchased for cash will be recorded in cash payment journal

24)correct option is "D" -General journal

since depreciation is a general expense ,it will be recorded in general journal

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