A Calendar Year Reporting Company Preparing Its Annual Financial Statements

question 42

Multiple Choice

A calendar year reporting company preparing its annual financial statements should use the phrase "As of December 31,2011" 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.

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Definitions:

Sales Growth

The percentage increase in sales over a specified period of time, indicating the health and success of a business.

Worst Case Scenario

The most severe or unfavorable outcome that may happen in a given situation.

Expected Value

The average of all possible outcomes of a random variable, weighted by their respective probabilities.

Economic Assumptions

Hypotheses about the future economic condition that are used for planning and budgeting purposes.