The income statement summarizes a company's operating performance ________ and the balance sheet shows a company's financial position ________.
A) at a point in time; over a period of time
B) at a point in time; at a point in time
C) over a period of time; over a period of time
D) over a period of time; at a point in time

Question

Quizplus · Accepted Answer

The income statement summarizes a company's operating performance over a period of time, usually for a specific quarter or year, whereas the balance sheet shows a company's financial position at a specific point in time, usually at the end of the quarter or year. Choice D is therefore the best choice because it correctly identifies the time frames for each financial statement.

The Income Statement Summarizes a Company's Operating Performance ________ and the Balance