You have been asked to analyze Yum Brands. Your objective is to remove the effects of judgment on the financial statements as much as possible. If you can only look at one statement, which statement of Yum Brands will most remove the effects of judgment?
A) Balance sheet
B) Income statement
C) Statement of cash flows

Question

Quizplus · Accepted Answer

The statement of cash flows is the best choice because it focuses on actual cash transactions, reducing the impact of accounting judgments and estimates that can significantly affect the income statement and balance sheet.

You Have Been Asked to Analyze Yum Brands