Which statement is correct?
A)The income statement tracks the flow in assets and liabilities on the balance sheet.
B)The balance sheet reports the economic performance of the company.
C)The income statement reports performance of the company.
D)The cash flow statement tracks the flow of revenues and expenses in the income statement.

Question

Quizplus · Accepted Answer

The income statement reports the performance of the company by tracking revenues and expenses over a specific period of time. The balance sheet reports the financial position of the company at a specific point in time by listing its assets, liabilities, and equity. The cash flow statement tracks the flow of cash in and out of the company, including operating, investing, and financing activities, but it is not directly tied to the income statement.

Which Statement Is Correct