Which of the following is/are true regarding the statement of ﬁnancial position and statement of comprehensive income?
A) The statement of comprehensive income reﬂects a summary of activity that occurs over some period of time while the statement of ﬁnancial position is a snapshot taken at a
Single point in time.
B) Both represent a summary of activity that occurs over some time period.
C) The two statements, taken together, give an accurate estimate of the ﬁrm's cash ﬂows and market value.
D) Both are independent of the statement of cash ﬂows.
E) Only the statement of ﬁnancial position is required in developing the statement of cash ﬂows.

Question

Quizplus · Accepted Answer

The statement of comprehensive income reflects activity over a period of time (usually a year), while the statement of financial position is a snapshot of the company's financial situation at a single point in time (usually the end of the year).

Which of the Following Is/are True Regarding the Statement of ﬁNancial