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The balance sheet heading will specify a . A) Period of time B) Point in time
Definitely Point of time
Balance sheetis normally made to know the position of assets and liabilities at a certain point of time
Whereas, Income statement is prepared for a period……
period of time
For my answer to this question, is A. Period of time
balance sheet represent the financial position in a point of time but income statment represent the performance of operation over a period of time
Balance Sheet presents the financial position of a company at a specific point in time (i.e. at31st Dec2XXX)
Income Statement presents the earnings and expenses over a specific period of time (i.e. from1st Jan2XXX to31st Dec2XXX)
Example excerpt from an audit report:
We have audited the accompanying balance sheet of ABC Company (the “Company”) as at31 December2012 and the related statements of income, cash flows and changes in shareholders’ equity for period from1 January2012 to31 December2012 (the “period”).
Balance sheet represent at point of time
Income statement represent at period of time
Balance Sheet heading usually say "as at" and Income Statement "from-to".
So its simple - Balance sheet is for Point of time and Income Statement is for Period of time.
Answer B Point of time
B
a specific point of time because balance sheet represent financial position of a company on a specific dated
