Horace is reviewing a document that shows the results of his business's operations over a period of one year.Horace is looking at the:
A)statement of profit and loss and other comprehensive income.
B)statement of financial position
C)statement of cash flow.
D)statement of financial position.

Question

Quizplus · Accepted Answer

The statement of profit and loss and other comprehensive income shows the business's revenue and expenses over a period of time, resulting in the net income or loss for the year. This is the document that would provide Horace with the results of his business's operations over the year. The statement of financial position shows the business's assets, liabilities, and equity at a specific point in time, while the statement of cash flow shows the movement of cash and cash equivalents into and out of the business during the year. While these statements are important for overall financial analysis, they would not provide Horace with the results of operations over the year. Therefore, the best choice is A.

Horace Is Reviewing a Document That Shows the Results of His