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 balances at a specific point in time, while the statement of cash flows measures flows over a period of time. Therefore, choice B is the best answer as it identifies the two reports that deal with measuring flows over a period of time.

Which Accounting Reports Are Concerned with Measuring Flows Over a Period