ACCA Applied Knowledge · Business and Technology · Financial information provided by business
Zeta Co's finance director says the statement of profit or loss and other comprehensive income is mainly intended to help users assess the company's performance over the year. Which item would normally be presented in this statement?
Revenue earned from customers during the year appears in the statement of profit or loss and other comprehensive income because it is income of the period. Trade receivables and share capital are year-end balances, so they are reported in the statement of financial position instead.
- ARevenue earned from customers during the yearCorrect
- BClosing balance of trade receivables at the year end
- CShare capital in issue at the year end
Explanation
Revenue is income for the period and appears in profit or loss. Receivables and share capital are balances shown in the statement of financial position at the year end.
Did you get it right without looking?
One question tells you little. A timed set on Financial information provided by business shows your real accuracy, how long you take and where you lose marks.
More Financial information provided by business questions
- Which of the following is a primary financial statement that shows an entity's assets, liabilities and equity at a specific date?
- A company's management accountant uses a report that combines sales figures from a regional spreadsheet with figures from the central accoun…
- Which of the following would be classified as a current liability in a company's statement of financial position at 31 December?
- Which of the following is an example of financial information used primarily for stewardship and accountability to shareholders rather than …
- A company's management accounts are prepared monthly, with no legal format, while its published financial statements follow IFRS. Which stat…
- Which of the following is a characteristic of financial accounting rather than management accounting?