Why Is It Not a Good Idea to Rely on Your

Why is it not a good idea to rely on your income statement to run your business?

A) The income statement deducts noncash expenses, such as depreciation, even when no cash is actually flowing out of the business.
B) The income statement records cash when it comes into the business.
C) The income statement adds noncash expenses back to the business's earnings.
D) All of the above
E) None of the above