Asked by Darren Szack on May 10, 2024
Verified
A calendar year reporting company preparing its annual financial statements should use the phrase "At December 31,2020" in the heading of which financial statements?
A) On all of the required financial statements.
B) On the income statement only.
C) On the income statement and balance sheet,but not the statement of cash flows.
D) On the balance sheet only.
Annual Financial Statements
Reports that give an overview of a company's financial condition for a specific fiscal year, including income statements, balance sheets, and cash flow statements.
December 31
The last day of the year in the Gregorian calendar, often used as the end date for annual financial statements.
Balance Sheet
A Balance Sheet is a financial statement that displays a company's assets, liabilities, and shareholders' equity at a specific point in time.
- Comprehend the manner in which revenue and expenses are recorded and their repercussions on net income and financial statements.
Verified Answer
CT
Caitlin TomlinsonMay 17, 2024
Final Answer :
D
Explanation :
The balance sheet is a snapshot of a company's financial position at a specific point in time, hence the phrase "At December 31, 2020" is appropriate for the balance sheet. The income statement and statement of cash flows cover periods of time (e.g., the year ended December 31, 2020) rather than a specific date.
Learning Objectives
- Comprehend the manner in which revenue and expenses are recorded and their repercussions on net income and financial statements.