Financial statements are prepared after an entity's transactions are analyzed and recorded.Which of the following reports is one of the required financial statements?

Question

Quizplus · Accepted Answer

The statement of cash flows is one of the three required financial statements, along with the balance sheet and income statement. It reports the cash inflows and outflows during a particular period, categorizing them as operating, investing, or financing activities. The other options (B, C, and D) are not required financial statements, although a statement of return on assets may be included as a performance measure in some cases.

Financial Statements Are Prepared After an Entity's Transactions Are Analyzed