Oregon Construction Contractors (CCB) Practice Test

What term is used to describe the income statement, cash flow statement, and balance sheet?

1. Annual reports

2. Financial summaries

3. Performance evaluations

4. Business report cards

The correct answer is: Business report cards

The term that accurately describes the combination of the income statement, cash flow statement, and balance sheet is "annual reports." These documents collectively provide a comprehensive overview of a company's financial condition and performance over a specific period, typically a fiscal year. Annual reports serve multiple purposes: they give stakeholders—such as investors, creditors, and management—a clear picture of the organization's profitability, cash flows, and overall financial position. The income statement shows profitability over time, the cash flow statement reveals liquidity and cash management, and the balance sheet presents a snapshot of the company’s assets, liabilities, and equity at a given point in time. Together, they help assess financial health and guide decision-making for future strategies. The other options—financial summaries, performance evaluations, and business report cards—do not encapsulate these documents as a whole. They may imply various forms of reporting or assessment but lack the specificity and comprehensive nature of the annual report.