For External Reporting a Company Must Prepare Either an Income

question 74

True/False

For external reporting a company must prepare either an income statement or a statement of cash flows but not both.

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Definitions:

Main-purpose Rule

A legal principle stating that if the main purpose of a promise to pay another's debt is to benefit the promisor, the promise may be enforceable without being in writing.

Executor

An individual appointed in a will to manage the estate of the deceased, ensuring that all affairs are settled and wishes are honored.

Estate

The total property, assets, and liabilities of a person, especially considered in the context of inheritance or estate planning.

Portrait Painter

An artist who creates paintings that depict the appearance of a specific individual or group of people.