What is another term for "income statement"? (1 point)
A. "book value"
B. "operating expenses"
C. "statement of cash flow"
D. "profit and loss (P&L) statement"
D. "profit and loss (P&L) statement"
The correct answer is D. "profit and loss (P&L) statement".
The correct answer is D. "profit and loss (P&L) statement".
To find the answer, you can use the process of elimination by understanding the definitions and relationships of the other terms listed.
A. "Book value" refers to the value of an asset as recorded on a company's balance sheet, and it is not synonymous with an income statement.
B. "Operating expenses" are the costs a company incurs while conducting its normal business operations, but it is just one component of an income statement, not the entire statement itself.
C. "Statement of cash flow" is a separate financial statement that shows the inflows and outflows of cash for a particular period and is not the same as an income statement.
By the process of elimination, the remaining option, D. "profit and loss (P&L) statement," aligns with the definition and purpose of an income statement.