The balance sheet and the income statement are both used to prepare the statement of cash flows.

Question

Quizplus · Accepted Answer

Both the balance sheet and the income statement provide important information needed to prepare the statement of cash flows. The balance sheet provides information on the company's assets and liabilities, which are necessary for calculating changes in cash from operating activities. The income statement provides information on revenues and expenses, which are necessary for calculating cash from operating activities.

The Balance Sheet and the Income Statement Are Both Used