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ETHAN SKARMAS
on Nov 14, 2024

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For external reporting, a company must prepare either an statement of income or a statement of cash flows, but not both.

External Reporting

The process of providing financial statement information to external stakeholders such as investors, creditors, and regulatory agencies.

Statement of Income

A financial document that shows a company's revenues, expenses, and profits or losses over a specific period of time.

  • Attain knowledge regarding the purpose and explanation of the statement of cash flows.
  • Acquire an understanding of the linkage between the cash flow statement and other financial documents.
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JM
Jocelyn MaganaNov 18, 2024
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