Final answer:
The statement about the income tracker is true, as it assists in the monitoring of financial transactions, including unpaid invoices and bills which are essential aspects of managing a business's cash flow.
Step-by-step explanation:
The statement "The income tracker shows all customer and vendor transactions such as unpaid invoices and bills not paid" is true. In the context of business accounting, an income tracker is a tool used to monitor a company's financial transactions, which includes tracking both income from customers and expenses such as bills owed to vendors. Monitoring unpaid invoices is crucial for understanding the business's accounts receivable, while keeping track of unpaid bills is important for maintaining a clear picture of the business's accounts payable.
This kind of tracking is essential for a business to manage its cash flow, ensure timely collection of revenues, and prevent late payment of debts, which can often lead to additional interest or penalties.