The balance sheet usually reports the entity's financial position for both the current period and the previous period.This information is known as:
A) comparative information.
B) comprehensive information.
C) financial reporting.
D) narrative information.

Question

Quizplus · Accepted Answer

Comparative information refers to presenting financial information for the current period and the previous period side by side in order to show changes and trends over time. This is commonly done in the balance sheet, income statement, and statement of cash flows. Therefore, Choice A (comparative information) is the correct answer. Choice B (comprehensive information) refers to financial statements that include a wide range of financial and non-financial information, such as management discussion and analysis, notes to financial statements, and other supplementary information. Choice C (financial reporting) is a broad term that encompasses all financial communications by an entity, including financial statements, audit reports, management discussion and analysis, and regulatory filings. Choice D (narrative information) refers to any non-numeric explanation or description that is included in financial statements or other financial communications.

The Balance Sheet Usually Reports the Entity's Financial Position for Both