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Vincent joined a company a few months ago as a software engineer. He has decided to apply for a home mortgage. He understands that the salary he currently receives from his company is an important factor in obtaining this loan. Vincent recently received a personal financial statement along with his salary. Which personal financial statement did Vincent receive that can be used as a consideration for the mortgage?

Options:
A. Income statement
B. Balance sheet
C. Cash flow statement
D. Tax return

1 Answer

5 votes

Final answer:

Vincent most likely received his tax return, which provides a detailed record of his income and taxes paid, making it a relevant document for mortgage considerations.

Step-by-step explanation:

The personal financial statement that Vincent received, which can be used as a consideration for the mortgage, is likely his tax return. A tax return provides detailed information on the income he has earned and the taxes he has paid, which is crucial for lenders when assessing his ability to repay a home mortgage. By contrast, an income statement could also show earnings but may not be as comprehensive for personal finances. A balance sheet reflects assets and liabilities but does not show income directly. Lastly, a cash flow statement shows the flow of cash in and out over a period, but again, doesn't show the taxable income specifically.

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