A calendar year reporting company preparing its annual ﬁnancial statements should use the phrase "At December 31, 20XX" in the heading of which of the following?
A) All the required ﬁnancial statements it prepares.
B) The statement of ﬁnancial position only.
C) The Statement of Earnings and statement of ﬁnancial position, but not the statement of cash ﬂows.
D) The Statement of earnings, but neither the statement of ﬁnancial position nor the statement of cash ﬂows.

Question

Quizplus · Accepted Answer

The phrase "At December 31, 20XX" is used in the heading of the statement of financial position only because it presents the financial position of a company at a specific point in time. Other financial statements, like the statement of earnings and the statement of cash flows, cover a period of time and typically use phrases like "For the Year Ended December 31, 20XX."

A Calendar Year Reporting Company Preparing Its Annual ﬁNancial Statements