SIE Exam Question 45: Answer and Explanation

Question: 45

Which financial statement provides a financial summary of the operating results of the company?

• A. Income statement
• B. Balance sheet
• C. Cash flow statement
• D. Annual report

Correct Answer: A

Explanation:

The income statement provides a financial summary of the operating results of the company. The balance sheet is a summary report of a company's assets and liabilities, along with stockholder equity. The cash flow statement provides a summary of a company's cash flow and other events that caused changes in their cash position. An annual report is a document describing operations and financial position that every company listed on the stock market must provide to its shareholders.