Which of the Following Financial Statements Does Not Cover a Period

question 155

Multiple Choice

Which of the following financial statements does not cover a period of time but rather reports amounts at a specific point in time?

• A) Income statement
• B) Balance sheet
• C) Statement of cash flow
• D) Statement of retained earnings

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Definitions:

Salaries

Regular payments made by an employer to an employee, typically paid monthly or biweekly for professional or office work.

Social Security Credit

Based on total wages and self-employment income during the year; the amount of earnings it takes to earn a credit changes each year; in 2009, a person had to earn $1,090 in covered earnings to get one credit; people born after 1929 need 40 credits in their lifetime to qualify for Social Security benefits.

Earnings

The amount of profit that a company produces during a specific period, indicating the financial performance.

401k Plan

A retirement savings plan offered by many American employers, allowing employees to save and invest a piece of their paycheck before taxes.