For reporting purposes, a company must prepare both an income statement and a statement of cash flows.

Question

Quizplus · Accepted Answer

An income statement shows the revenues, expenses, and net income of a business for a specific period. A statement of cash flows shows the cash inflows and outflows for the same period, providing information about the sources and uses of cash within the business. Both statements are necessary for reporting purposes as they provide important financial information about a company's performance.

For Reporting Purposes, a Company Must Prepare Both an Income