Answer:
C. Income Statement.
Step-by-step explanation:
When the set of financial statements is prepared using the cash basis or the modified cash basis of accounting, the most important statements are as follows:
A. Statement of Cash Receipts and Cash Disbursements: This statement derives the cash receipts with respect to cash sales, other fees earned, etc
And, the cash disbursements stated the expenses which are paid in cash
B: Balance Sheet: It records the stockholder equity, assets, and liabilities.
C. Statement of Financial Position: This statement is also known as the balance sheet which gives the analysis of the financial position, performance pf the business organization.
The income statement records all expenses and all revenues which are based on an accrual basis of accounting plus it gives appropriate values.