Question

: Maci is preparing the income statement for her company. Jon is preparing a report that needs to be filed with one of the government agencies the company reports to. What is implied here?

A : Both Maci and Jon are engaged in financial reporting.
B : Maci is preparing a formal financial statement, while Jon is engaged in financial reporting.
C : Jon is preparing a formal financial statement, while Maci is engaged in financial reporting.
D : Both Jon and Maci are preparing formal financial statements.

Answer 1

Maci is preparing a formal financial statement, while Jon is engaged in financial reporting.

Step-by-step explanation:

Financial statements are detailed financial information of the company, individual or any other entity's financial condition and activities. Appropriate financial data is presented in an organized and easily understandable manner.

Usually, they contain four key financial statements, together with an overview and management discussion:

1. A financial report or balance sheet, reflects at a particular point on the finances, commitments and equities of a corporation.

2. Statements of company earnings, costs and losses over a specified time period include a profit and loss account (P&L report) or a disclosure of full income or statement of sales and expenditure. The report on the performance of the company is given on the profits and losses statement. These include sales and other expenses during the specified period.

3. A declaration of changes in stock, equity, or surplus profits, shows adjustments in the company's share capital within a specified period.

4. A cash flow statement describes the operation, spending and funding of a business in general during a specified period.