One Mark at Stake

Rule 7 of 7 in this unit1.3.2

1.3.2 Business Economic Factors

SIE outline 1.3.2

Economic Indicators: one of the four most-missed topics in a published question-bank report.

Now answer

1 question on this screen, from this outline item's own pool, so some will test a rule you met earlier in the unit. Pick an answer, say how sure you are, then reveal. Being sure and wrong is the most useful thing that can happen here, and the coach treats it that way.

Question 1Exam level

A company reports $4 million of net income for the year, yet its cash balance fell. Which statement shows where the cash went?

A. The balance sheet, assets and liabilities at a moment B. The income statement, revenue and expenses for the year C. The statement of cash flows, operating, investing, financing D. The notes to the statements, which restate net income

How sure are you?

Sure Fairly sure Guessing

Correct: C. The statement of cash flows sorts cash movement into operating, investing and financing activities; it is the only place a falling cash balance beside a profit is explained.

A. The balance sheet reports the cash balance at a moment, never what moved it.

B. The income statement reports the profit itself, never cash movement.

D. The notes disclose policy and detail; they do not restate net income.

Unit: SIE outline 1.3.2

Back to the unitThat is every screen in this unit. The unit page has the whole reading and the video.

The whole unit · Your plan