Question

Wildhorse Co. prepared an income statement and balance sheet...

A) To estimate future revenue
B) For auditing purposes
C) To assess financial performance
D) For tax reporting

Answer 1

Wildhorse Co. prepared an income statement and balance sheet to assess financial performance. (Option C).

Step-by-step explanation:

The reason Wildhorse Co. prepared an income statement and balance sheet is C) To assess financial performance.

An income statement is a financial statement that shows a company's revenues, expenses, and profits over a specific period of time. It provides valuable information about the company's financial performance and helps assess its profitability.

On the other hand, a balance sheet is a financial statement that shows a company's assets, liabilities, and equity at a specific point in time.

It provides information about the company's financial position and helps assess its solvency and liquidity.