If a company issues both a balance sheet and an income statement with comparative figures from last year,a statement of cash flows:
A) is no longer necessary;but may be used at the company's option.
B) should not be issued.
C) should be issued for the current year only.
D) should be issued for each period for which an income statement is presented.

Question

Quizplus · Accepted Answer

A statement of cash flows should be issued for each period for which an income statement is presented. The comparative figures on the balance sheet and income statement provide information about the company's financial position and performance, but the statement of cash flows is necessary to show how the company's operations, investing, and financing activities have affected its cash balances during the period.

If a Company Issues Both a Balance Sheet and an Income