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Income Statement:
Income statements are the statements which evaluate the financial position of the company of a particular period of time with respect to net profit or loss over a period of time.
Balance sheet is the financial statement which represents the financial position the company at a given point of time.
Prospectus:
Prospectus is a document of a company enforced by law for the companies which are proposed to offer their shares to the public.
Financial Statement Notes:
Financial statements notes are the footnotes to provide any additional information. It indicates information which does not form part of balance sheet and income statement account.
Company News Releases:
Company news releases constitute news conveyed by firms for making news.
Statement of
Statements of cash flows constitute a part of financial statement and specify the amount of
Stock Price Information and Analysis:
Stock price information and analysis is an examination of shares and stock of a firm which is valuable for the investors.
Statement of Shareholders Equity:
Statement of shareholders equity represents changes in equity that have occurred during a given period. Any contribution made will lead to increase in capital whereas any withdrawals reduce the amount of capital.
To identify: Classification of items in financial reporting and general purpose financial statements.
Explanation of Solution
a.
Income statements are the statements which evaluate the financial position of the company of a particular period of time with respect to net profit or loss over a period of time.
Hence, it is a part of financial statement.
b.
Balance sheet is the financial statement which represents the financial position the company at a given point of time.
Hence, it is a part of general purpose financial statements.
c.
Prospectus is a document of a company enforced by law for the companies which are proposed to offer their shares to the public.
Hence, it is not a part of financial statement.
d.
Financial statements notes are the footnotes to provide any additional information. It indicates information which does not form part of balance sheet and income statement account.
Hence, it is a part of financial statement.
e.
Company news releases constitute news conveyed by firms for making news.
Hence, it is not a part of financial statement.
f.
Statements of cash flows constitute a part of financial statement and specify the amount of cash inflows and outflows. It consists of operating activities, investing activities and financing activities.
Hence, it is a part of financial statement.
g.
Stock price information and analysis is an examination of shares and stock of a firm which is valuable for the investors.
Hence, it is not a part of financial statement.
h.
Statement of shareholders equity represents changes in equity that have occurred during a given period. Any contribution made will lead to increase in capital whereas any withdrawals reduce the amount of capital.
Hence, it is a part of financial statement.
i.
Management discussion and analysis of financial performance is a part of company’s annual report. It constitutes management’s opinion on past and present performance.
Hence, it is not a part of financial statement.
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Chapter 13 Solutions
FINAN. AND MANAGERIAL ACCT. CONNECT+PROC
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- Whispering Winds Corp.'s trial balance at the end of its first month of operations reported the following accounts and amounts with normal balances: Cash $14720 Prepaid insurance 460 Accounts receivable 2300 Accounts payable 1840 Notes payable 2760 Common stock 4600 Dividends 460 Revenues 20240 Expenses 11500 Total credits on Whispering Winds Corp's trial balance are A. $28980. B. $30360. C. $29900. D. $29440arrow_forwardSwifty Corporation's trial balance reported the following normal balances at the end of its first year: Cash $14440 Prepaid insurance 530 Accounts receivable 2660 Accounts payable 2130 Notes payable 3190 Common stock 4100 Dividends 530 Revenues 22040 Expenses 13300 What amount did Swifty Corporation's trial balance show as total credits? A. $31460 B. $32520 C. $30930 D. $31990arrow_forwardMonty Inc., a major retailer of high-end office furniture, operates several stores and is a publicly traded company. The company is currently preparing its statement of cash flows. The comparative statement of financial position and income statement for Monty as at May 31, 2020, are as The following is additional information about transactions during the year ended May 31, 2020 for Monty Inc., which follows IFRS. Plant assets costing $69,000 were purchased by paying $47,000 in cash and issuing 5,000 common shares. In order to supplement its cash, Monty issued 4,000 additional common shares. Cash dividends of $35,000 were declered and paid at the end of the fiscal year. create direct method cash flow statement, show your workarrow_forward
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