Final answer:
The financial document created for a business that states its profit or loss is known as an a) Income Statement. It outlines incomes and expenses to show financial performance, signalling whether there is a profit (surplus) or a loss (deficit).
Step-by-step explanation:
When determining if a company has a cash surplus or cash deficit, the financial document created to state a business's profit or loss is known as an Income Statement. This document would typically outline all of the incomes and expenses over a certain period and help to provide a clear picture of the company's financial performance. The balance between income (or revenue) and expenses will indicate whether the company has ended the period with a profit (surplus) or a loss (deficit). It's crucial to differentiate between different financial statements. The Balance Sheet reports a company's assets, liabilities, and shareholder equity at a particular point in time, providing insight into what the company owns and owes, as well as the amount invested by the shareholders. The Cash Flow Statement, on the other hand, shows the actual cash generated and used by the company over a specific period, offering a detailed view of a company's liquidity. Moving beyond the context of individual businesses, when we discuss federal deficits or the national debt, we're referring to the annual budget deficit or surplus, which is the difference between tax revenue collected and government spending over a fiscal year. This operates in the realm of public finance rather than corporate accounting.