CPC 26 (2011) defines financial statements as a structured representation of the financial position and performance of the entity. A set of financi...

CPC 26 (2011) defines financial statements as a structured representation of the financial position and performance of the entity. A set of financial statements is established to cover the informational needs of users and the established objectives. Therefore, analyze the following assertions about financial statements and choose the correct alternative. I. The Balance Sheet aims to present the financial and equity position of the company in a given period. II. The Income Statement presents how profit or loss is formed in a given period. III. The Statement of Changes in Equity aims to generate information about cash inflows and outflows of an entity in a given period. IV. The Cash Flow Statement indicates the origin and value of each increase or decrease in Equity during the year. Choose the correct alternative:

I. The Balance Sheet aims to present the financial and equity position of the company in a given period.
II. The Income Statement presents how profit or loss is formed in a given period.
III. The Statement of Changes in Equity aims to generate information about cash inflows and outflows of an entity in a given period.
IV. The Cash Flow Statement indicates the origin and value of each increase or decrease in Equity during the year.
A Only I and II are correct.
B Only I and III are correct.
C Only II and IV are correct.
D Only I, III, and IV are correct.
E All are correct.