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Problem 1: Why is the income statement important?
Select one:
a. Because it balances all of the assets, liabilities, and owner's equity of a business.
b. Because it determines the cash flow of a business for the current period.
c. Because it plays a key role in the decision-making of the business' users by communicating revenues, expenses, and net income (or net loss) for the period.
d. Because it plays a key role in the decision-making of the business' users by communicating whether the business generate enough cash from its operations.
Financial Statement Analysis and Preparation
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