Since both the income statement and the statement of cash flows report on company changes,
A)an income statement is not necessary if a statement of cash flows is prepared.
B)a statement of cash flows is not necessary if an income statement is prepared.
C)a statement of cash flows and an income statement are prepared regardless.
D)a balance sheet is not necessary if an income statement and a statement of cash flows is prepared.
E)a balance sheet is not necessary if either an income statement or a statement of cash flows is prepared.

Question

Quizplus · Accepted Answer

Both the income statement and the statement of cash flows provide different types of information and are necessary for a complete understanding of a company's financial performance. Therefore, both statements are prepared regardless. The balance sheet is also necessary as it provides a snapshot of a company's financial position at a specific point in time.

Since Both the Income Statement and the Statement of Cash