The statement of financial position and statement of profit and loss and other comprehensive income are separate reports, but actually:
A)complement each other.
B)contradict each other.
C)display information for the same time duration.
D)display vision and mission statements for the company.

Question

Quizplus · Accepted Answer

The statement of financial position (balance sheet) and statement of profit and loss (income statement) are complementary reports as they provide different information about a company's financial performance and position. The balance sheet shows a company's assets, liabilities, and equity at a specific point in time, while the income statement shows a company's revenues, expenses, and net income over a period of time. Together, these two reports provide a more complete picture of a company's financial health.

The Statement of Financial Position and Statement of Profit and Loss