Which two basic statements provide most of the financial data needed for analysis?
A) statement of retained earnings and income statement
B) sources and uses of working capital and the balance sheet
C) non-operating gains and losses and statement of financial position
D) historical income statement and balance sheet
E) statement of financial position and statement of owner's equity

Question

Quizplus · Accepted Answer

The historical income statement and balance sheet provide the majority of the financial data needed for analysis. The income statement shows the company's revenue, expenses, and net income over a period of time, while the balance sheet shows the company's assets, liabilities, and equity at a specific point in time. By analyzing both of these statements, analysts can gain insight into a company's financial performance and position.

Which Two Basic Statements Provide Most of the Financial Data