Unlike the P&L and Cash Flow Statement the ________ can be kept to year-end figures for the purposes of startup business planning.
A) Startup Costs
B) EBIT
C) Income Statement
D) Balance Sheet

Question

Quizplus · Accepted Answer

The Balance Sheet can be kept to year-end figures for the purposes of startup business planning, as it provides a snapshot of the financial position of a business at a specific point in time rather than a report of financial activity over a period of time, like the P&L and Cash Flow Statement. Startup Costs (A) are typically projections or estimates of the expenses associated with starting a business, while EBIT (B) and the Income Statement (C) both require regular tracking and updating to provide an accurate picture of a business's financial performance.

Unlike the P&L and Cash Flow Statement the ________ Can