Question

Which of the following financial statements provides information about a company as of a specific point in time?

Income statement

Statement of changes in equity

Statement of cash flows

Balance sheet

Answer 1

• The correct answer is Option #4: Balance Sheet. Balance Sheet provides information about a company as of a specific point in time.
• This is because Balance Sheet is prepared at ‘particular date’ and discloses balances of various accounts on that ‘particular date’.

It is therefore that when Balance Sheet is prepared, it is written “…as at Dec 31, 2018” or “Dec 31, 2018”

• All the other options provide information for a ‘period of time’ and not of a specific time.

It is therefore that when Income Statement, Statement of Changes in Equity and Statement of Cash flows are prepared, it’s written like “For the year ended 31 Dec, 2018”