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    Which statement provides the most useful information

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    The balance sheet, income statement and statement of cash flows are tools used to evaluate a company's financial position. Which one of these statements do you believe provides most useful information? Explain your position.

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    Solution Preview

    First, here is some information for you about the three financial statements listed in the question:

    Income Statement:

    You use an income statement to track revenues and expenses so that you can determine the operating performance of your business over a period of time.

    Balance Sheet:

    Also called a statement of financial position, a balance sheet is a financial ...

    Solution Summary

    The solution determines which statement provides the most useful information.