There are four primary financial statements that are used to measure the performance of a firm. Which of the choices below are included among these four? A. the statement of cash flow and statement of balance. B. the balance statement and income statement. C. the income sheet and statement of retained earnings. D. the balance sheet and statement of cash flow

Question

Business

Singh

27 June, 22:59

There are four primary financial statements that are used to measure the performance of a firm. Which of the choices below are included among these four? A. the statement of cash flow and statement of balance. B. the balance statement and income statement. C. the income sheet and statement of retained earnings. D. the balance sheet and statement of cash flow

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Answers (1)

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Isabell Castro · Answer 1

D. The balance sheet and statement of cash flow

Explanation:

The balance sheet is a statement that show the financial position of a business as at a particular date. It is usually prepared to provide an overview of how well the company manages its assets and liabilities.

The cash flow statement is the statement that shows the flow of cash leaving and entering a firm. It is regarded as the most important financial statement because it provides reconciliation between the net income and the cash flow The cash flow statement is a combination of both the income statement and the balance sheet. It shows details on how much the firm spends on dividends, and capital expenditures. It also provides the source and uses of cash flow from operations, investing, and financing.

Another financial statement used to measure performance is the Income statement