Scenario - The Williams Company
Based in South Dakota,USA,the Williams Company has been in operation since 1967.It has five branches located in China,Europe,South America,Mexico,and Canada.Its exquisite product line of fine custom-made jewelry is highly desired throughout the world.This company has maintained a very healthy balance sheet.
The Williams Company is known within the industry for integrity and fair business practices.This company maintains an accounting system that is open for any stakeholder to view.It prides itself on being honest and trustworthy.The company feels it is this honesty in business practice that has led it to be a billion dollar organization.
-If the company's stakeholders requested to be shown a financial statement that summarized the revenues earned and the expenses incurred by the Williams Company for a given period of time,which one of the following statements would they most likely be requesting?

Question

Quizplus · Accepted Answer

An income statement summarizes the revenues earned and the expenses incurred by a company over a given period of time. Therefore, if stakeholders of the Williams Company requested to be shown a financial statement that summarized the revenues earned and the expenses incurred by the company for a given period of time, they would most likely be requesting an income statement. The other options do not provide a summary of revenues and expenses specifically.

Scenario - the Williams Company