Which of the following statements is CORRECT?

Select one:

a. Even if companies are required to follow GAAP, two firms in exactly the same operating situation might not have exactly the same financial statement.

b. If a firm follows generally accepted accounting principles (GAAP), then its reported net income will be identical to its reported net cash flow.

c. The balance sheet shows us the firms financial situation over a period of time.

d. The numbers shown on balance sheets generally represent market costs.

e. The statement of cash flows tells us how much cash the firm has in the form of currency and demand deposits.