If a company issues both a balance sheet and an income statement with comparative figures from last year, Statement of Cash Flows:
A) Should be issued for the current year only.
B) Should be issued for each period for which an income statement is presented.
C) is no longer necessary; but may be used at the company's option.
D) Should not be issued.

Question

Quizplus · Accepted Answer

According to generally accepted accounting principles (GAAP), if a company issues both a balance sheet and an income statement with comparative figures from last year, a statement of cash flows should be issued for each period for which an income statement is presented. This is because the statement of cash flows provides valuable information about the company's cash inflows and outflows and helps users assess its liquidity and solvency.

If a Company Issues Both a Balance Sheet and an Income