For external reporting a company must prepare either an income statement or a statement of cash flows but not both.

Question

Quizplus · Accepted Answer

A company must prepare both an income statement and a statement of cash flows for external reporting purposes. The income statement shows the company's revenues, expenses, and net income for a specific period of time, while the statement of cash flows shows the company's inflows and outflows of cash during the same period.

For External Reporting a Company Must Prepare Either an Income