Which accounting reports are concerned with measuring flows over a period of time?
A)statement of comprehensive income and statement of financial position.
B)statement of comprehensive income and statement of cash flows.
C)statement of cash flows and statement of financial position.
D)statement of comprehensive income, statement of cash flows and statement of financial position.

Question

Quizplus · Accepted Answer

The statement of comprehensive income and statement of financial position are concerned with measuring stocks or amounts at a point in time, while the statement of cash flows measures cash inflows and outflows over a period of time. Therefore, only the statement of comprehensive income and statement of cash flows are concerned with measuring flows over a period of time.

Which Accounting Reports Are Concerned with Measuring Flows Over a Period