Which of the following financial statements would likely be the most effective in conveying information to users that will help them to predict the long-term future cash flows of the company?
A)A classified balance sheet prepared under the accrual basis of accounting
B)A proforma cash flow statement showing expected cash flows for the next year
C)A multi-step income statement prepared under the accrual basis of accounting
D)A cash flow statement showing actual cash flows for the past two year

Question

Quizplus · Accepted Answer

A multi-step income statement provides detailed information about revenues, expenses, and profits, which can help users assess the company's ability to generate future cash flows.

Which of the Following Financial Statements Would Likely Be the Most