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A simple listing of expected cash inflows and outflows provides the entrepreneur with a

A. Balance sheet
B. Income statement
C. Cash flow statement
D. Statement of retained earnings

1 Answer

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Final answer:

A simple listing of expected cash inflows and outflows is known as a Cash flow statement (option C), which tracks the liquidity of a business over a period. It's distinct from a balance sheet, income statement, and statement of retained earnings, which serve other financial assessment purposes.

Step-by-step explanation:

A simple listing of expected cash inflows and outflows provides the entrepreneur with a C. Cash flow statement. A cash flow statement is a financial document that tracks the money entering and leaving a business, essentially showing the company's liquidity over a period of time. It's an essential tool for financial planning and for assessing the health of a business.



Other financial statements include a balance sheet, which lists assets and liabilities, showing the net worth or capital of a business at a particular point in time. An income statement, on the other hand, shows the company's revenue and expenses over a period, resulting in a net profit or loss. The statement of retained earnings explains changes in a company's retained earnings over the reporting period.

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