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 of the required financial statements it prepares.
B)the statement of financial position only.
C)the income statement and statement of financial position,but not the statement of cash flows.
D)the income statement,but neither the statement of financial position nor the statement of cash flows.

Question

Quizplus · Accepted Answer

The phrase "At December 31,20XX" should be used in the heading of the statement of financial position, also known as the balance sheet, as this statement reflects the company's financial position at the end of the calendar year. It is not necessary to use this phrase in the heading of the income statement or statement of cash flows, as these statements cover a period of time rather than a specific date.

A Calendar Year Reporting Company Preparing Its Annual Financial Statements