When financial analysts review the different financial statements reported by companies. It is crucial to understand how these financial statements are linked. Mark the correct sentence in relation to these linkages.

• a) The income statement, the cash flow statement, and the shareholder’s equity statement can be considered as “flow” statements, while the balance is considered as a “stock” statement.

• b) The balance sheet and the shareholder’s equity statement are elaborated according to the cash principle, while the income statement and the cash flow statement are elaborated according to the accrual principle.

• c) The income statement, the cash flow statement, and the shareholder’s equity statement can be considered as “stock” statements, while the balance is considered as a “flow” statement.