Question

On December 31, 2010, Little Bill's Corporation is preparing their end of year financial statements for 2010. Determine the correct heading for the Statement of Cash

Answer 1

The heading for Little Bill's Corporation's Statement of Cash Flows on December 31, 2010, would read: 'Little Bill's Corporation Statement of Cash Flows For the Year Ended December 31, 2010.'

Step-by-step explanation:

The correct heading for the Statement of Cash Flows for Little Bill's Corporation as of December 31, 2010, would include the company's name, the title of the financial statement, and the specific period of time that the statement covers. An example of such a heading is:

Little Bill's Corporation

Statement of Cash Flows

For the Year Ended December 31, 2010

The heading is an essential part of financial reporting as it identifies the entity, the type of report, and the time frame concerned, thus ensuring clarity and comprehension for stakeholders reviewing the document.