Which of the Following Statements About the Format of Financial

question 43

Multiple Choice

Which of the following statements about the format of financial statements is correct?

• A)A double underline is drawn below the subtotal for Total Liabilities on the balance sheet.
• B)Dollar signs are omitted if the heading states that amounts are reported in U.S.dollars.
• C)Dividends are shown in parentheses on the statement of retained earnings.
• D)The order of the items included in the heading of each financial statement is as follows: the name of the business,the time period covered by the financial statement,and the title of the report.

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Definitions:

Financial Ratios

Financial ratios are quantifiable measures used to evaluate a company's financial performance by comparing two line items from financial statements.

Industry

A category of businesses that produce or sell similar products, services, or are involved in the same level of economic activity.

Operating Activities

Business actions directly involved in the production and delivery of goods and services, as reflected in the cash flow statement.

Current Accounts

A type of demand deposit account that allows withdrawals and deposits, typically used by businesses for their frequent money transactions.