A calendar year reporting company preparing its annual financial statements should use the phrase "At December 31,2020" in the heading of which financial statements?

Question

Quizplus · Accepted Answer

The balance sheet is a snapshot of a company's financial position at a specific point in time, hence the phrase "At December 31, 2020" is appropriate for the balance sheet. The income statement and statement of cash flows cover periods of time (e.g., the year ended December 31, 2020) rather than a specific date.

A Calendar Year Reporting Company Preparing Its Annual Financial Statements