Answer:
D) It is the link between the accrual-based income statement and the cash reported on the balance sheet.
Explanation:
As, for cash flow statement, it best describes the net cash used or provided by current year business transactions, and not just the accrual income sources.
Therefore, it performs a kind of reconciliation between accrual income and cash basis of income.
It depicts transactions in three categories - Operating, Investing and Financing Activities.
Therefore, from all the stated statements
Statement D is true.
