Which of the following financial statements would likely be the most effective i

Question

Which of the following financial statements would likely be the most effective in conveying information to users that will help them to predict the long-term future cash flows of the company?

A) A classified balance sheet prepared under the accrual basis of accounting

B) A proforma cash flow statement showing expected cash flows for the next year

C) A multi-step income statement prepared under the accrual basis of accounting

D) A cash flow statement showing actual cash flows for the past two year

Explanation / Answer

A multi-step income statement prepared under the accrual basis of accounting

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