Which financial statements constitute the basic reporting requirements in the financial process?
A) Statement of owners' equity, statement of cash flow, and balance sheet
B) Balance sheet, income statement, and statement of cash flow
C) Income statement, statement of cash flow, and statement of owners' equity
D) Balance sheet, statement of owners' equity, and income statement

Question

Quizplus · Accepted Answer

The basic reporting requirements in the financial process are the balance sheet, income statement, and statement of cash flow. The balance sheet shows the company's assets, liabilities, and equity at a specific point in time. The income statement shows the company's revenues and expenses over a period of time, while the statement of cash flow shows the company's cash inflows and outflows during a period. The statement of owner's equity is also important, but it is not one of the basic financial statements.

Which Financial Statements Constitute the Basic Reporting Requirements in the Financial