The income statement is an important financial statement for all of the following reasons, except
A)the income statement supports the stewardship function by helping stockholders evaluate management's operating effectiveness
B)past income statements can be useful indicators in predicting current and future cash dividend payments as well as future stock prices
C)the income statement provides useful information concerning the corporation's ability to generate sufficient cash flows from operations for use in payment of its operating obligations
D)the income statement reports to users the amount of net cash inflows resulting from operating, financing, and investing activities

Question

Quizplus · Accepted Answer

The income statement reports the revenues and expenses, resulting in the net income or loss for the period. It does not directly report the amount of net cash inflows resulting from operating, financing, and investing activities. This information is typically reported on the statement of cash flows.

The Income Statement Is an Important Financial Statement for All