There are four primary financial statements that are used to measure the performance of a firm.Which of the choices below are included among these four?
A)The balance statement and income statement
B)The income sheet and statement of retained earnings
C)The statement of cash flows and statement of balance
D)The balance sheet and statement of cash flows

Question

Quizplus · Accepted Answer

The four primary financial statements are the balance sheet, income statement, statement of cash flows, and statement of retained earnings. The balance sheet and statement of cash flows are included in the four primary financial statements, making option D the correct choice. The income statement and statement of retained earnings are both components of the statement of comprehensive income. The statement of balance does not exist, and thus is not a valid choice.

There Are Four Primary Financial Statements That Are Used to Measure