Asked by Logan Tippett on Jun 11, 2024
Verified
An income statement reports on investing and financing activities.
Investing Activities
Activities involving the buying and selling of long-term assets and investments, excluding those considered as cash equivalents.
Financing Activities
Activities that result in changes in the size and composition of the contributed equity and borrowings of an entity, often reflected on the cash flow statement.
- Recognize the core financial statements and their components.
- Comprehend the importance of cash flow management and its relation to operating, investing, and financing activities.
Verified Answer
GQ
Guillermo QuintanillaJun 15, 2024
Final Answer :
False
Explanation :
An income statement reports on a company's revenues and expenses for a specific period of time, and does not include information on investing and financing activities. These activities are typically reported in the company's statement of cash flows or balance sheet.
Learning Objectives
- Recognize the core financial statements and their components.
- Comprehend the importance of cash flow management and its relation to operating, investing, and financing activities.
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