The accounting reports concerned with measuring flows over a period of time are:
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 cash flows are both concerned with measuring flows over a period of time. The statement of financial position, however, is concerned with measuring balances at a specific point in time. Therefore, the best choice is B - statement of comprehensive income and statement of cash flows.

The Accounting Reports Concerned with Measuring Flows Over a Period