The income statement is used to prepare the:

Question

Quizplus · Accepted Answer

The income statement provides information about a company's revenues and expenses, which is essential for preparing both the Statement of Retained Earnings and the Statement of Cash Flows. The Statement of Retained Earnings shows how the company's net income or loss affects the balance of retained earnings, which is reported on the balance sheet. The Statement of Cash Flows shows how the company's operating, investing, and financing activities affect its cash balance, which is also reported on the balance sheet. Therefore, choice D is the best answer.

The Income Statement Is Used to Prepare The