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<p>a. Income Statement for the year and comparative balance sheet for two years.</p> <p>b. Comparative balance sheet for two years and statement of changes in equity.</p> <p>c. Income Statement for two years and Statement of Changes in Equity.</p> <p>d. None of the above.</p>
a. Income Statement for the year and comparative balance sheet for two years
I agree with all previous answers..a. Income Statement for the year and comparative balance sheet for two years.
Option A is the right answer.
Answer A income statement and two statements of financial position
a. Income Statement for the year and comparative balance sheet for two years. - is the correct option.
The reason is that past2 years balance sheet and1 year trial balance which can be prepared from Income Statement of last FY gives you sufficient data related to Inflows & Outflows for3 consecutive years and the same can be based for projecting / predicting future years cash flows.
OPTION A IS CORRECT ANSWER
Option B is the most accurate answer.
For Cash Flow Statement - From Income Statement only Profit for the year is taken, this information available in Retained Earnings part of Balance Sheet. Cash Changes from Investing, Financing and Operating Activities are all available in Balance Sheet of2 years. Some part can be taken from Statement from changes in Equity for Preparing Cash Flow Statement to be more specific like buy or sale of equity shares.
Select from below combination of financial statements, which one can provide sufficient information to prepare a cash flow statement ? :
a. Income Statement for the year and comparative balance sheet for two years.
1st option would give most of the information required for cash flow statement.
