Why is the income statement an important input for a company’s balance sheet and statement of cash flows? A :    The income statement is used to calculate earnings before interest and taxes.    B :    The income statement shows the depreciated and amortized expenses.    C :    The income statement shows the value of long-term asset and liabilities.    D :    The income statement calculates the firm’s net income and is used for earnings.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter2: Introduction To Financial Statements
Section: Chapter Questions
Problem 15MC: Which financial statement shows the financial performance of the company on a cash basis? A. balance...
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Why is the income statement an important input for a company’s balance sheet and statement of cash flows?
  • A : 
     
    The income statement is used to calculate earnings before interest and taxes. 
     
  • B : 
     
    The income statement shows the depreciated and amortized expenses. 
     
  • C : 
     
    The income statement shows the value of long-term asset and liabilities. 
     
  • D : 
     
    The income statement calculates the firm’s net income and is used for earnings. 
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