Question

Which of the following statement is true?
A. Financial statement provide information about cash flow.
B. Financial statement provide information about the credit earning capacity of the business.

• A. Only A
• B. Only B
• C. Both A and B
• D. None of the above

Answer 1

The correct option is A Only A

The primary objective of financial statement is to assist the users in their decision making. Financial statement provide information useful to investors and creditors for predicting, comparing and evaluating, potential cash flows in term of amount, timing and related uncertainties.