The most future-directed of the basic financial statements is the
A) statement of stockholders' equity.
B) statement of cash flows.
C) income statement.
D) balance sheet.

Question

Quizplus · Accepted Answer

The statement of cash flows is the most future-directed of the basic financial statements as it provides information about a company's future cash inflows and outflows, which is crucial in determining its ability to meet financial obligations and invest in future growth opportunities. The income statement and statement of stockholders' equity show the company's financial performance in the past, while the balance sheet provides a snapshot of its financial position at a specific point in time.

The Most Future-Directed of the Basic Financial Statements Is the