The four financial statements prepared by a business are not interrelated.

Question

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The four financial statements prepared by a business, namely the income statement, balance sheet, cash flow statement, and statement of changes in equity, are interrelated and provide different perspectives on the financial health and performance of the business. The information on one statement can impact the figures on the others, reflecting the dynamic nature of a business's financial position.

The Four Financial Statements Prepared by a Business Are Not