The income statement provides better information about a company than the statement of cash flows.

Question

Quizplus · Accepted Answer

This statement is false. While the income statement provides information about a company's revenue and expenses, it does not necessarily show the company's cash flow. The statement of cash flows provides information about the company's inflows and outflows of cash during a certain period, which shows a more accurate picture of a company's liquidity and financial health. Therefore, the statement of cash flows typically provides better information about a company than the income statement.

The Income Statement Provides Better Information About a Company Than