A Calendar Year Reporting Company Preparing Its Annual Financial Statements

question 75

Multiple Choice

A calendar year reporting company preparing its annual financial statements should use the phrase "As of December 31, 2014" in the heading of which financial statements?

• A) On all of the required financial statements.
• B) On only the income statement.
• C)On the income statement and balance sheet, but not the statement of cash flows.
• D)On the balance sheet only.

---

Definitions:

EOM

EOM stands for "End of Month," which is a term often used in accounting and business to signify deadlines or the conclusion of financial periods.

Invoice

A document issued by a seller to a buyer that specifies the products or services provided and the corresponding payment terms.

Scratch-and-Save

A promotional discount method where customers scratch a card to reveal a discount or prize.

Profit

The financial gain realized when the revenue generated from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.