Practice prompt · Q:transactions-to-statements/statement-scope-001

Match a financial question to statement scope

Practice checking statement type, period versus date, unit, entity scope, and unsupported cash or value conclusions.

Updated Sep 5, 2026 Review due Nov 6, 2026

Practice

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An analyst receives an annual income statement, a statement of changes in equity, and a December 31 balance sheet from separate exports. Which approach correctly matches statement scope and supports a valid tie?

Choose the best answer. A Use income for period performance, changes in equity for the equity reconciliation, and the balance sheet for ending position. Match company, dates, units, and version. B Use the balance sheet to measure annual revenue. C Use net income as the change in Cash. D Combine dollars and thousands of dollars without conversion if the line names match.

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Answer: A

The income statement reports performance over a period, the changes-in-equity statement reconciles components across that period, and the balance sheet reports position at the ending date. Entity, consolidation scope, currency, unit, period, date, and version must match before shared amounts are tied. Choice A is correct.