Asked by
ETHAN SKARMAS
on Nov 14, 2024Verified
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.
Verified Answer
JM
Learning Objectives
- 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.