A bank's balance sheet lists assets and liabilities, while its income statement reports income. Which statement is true?

• A. The balance sheet lists assets and liabilities; the income statement reports net interest income and non-interest income.
• B. The balance sheet reports profits; the income statement lists cash flows.
• C. The balance sheet shows only assets; the income statement shows only liabilities.
• D. The balance sheet is used for regulatory reporting; the income statement is not.

Answer: (A)