The essential difference between the statement of cash flows and the income statement is that:

Select one:

A. The income statement is based on the accruals concept, whereas the statement of cash flows reports cash received and paid.

B. The income statement is prepared for external users, whereas the statement of cash flows is prepared for internal users only.

C. The statement of cash flows only deals with the investors needs, whereas the income statement also deals with the needs of the managers.

D. The statement of cash flows is a forecast of the future, whereas the income statement reports on historical events.