Question

Which of the following statements are true?
a. Financial statements are only interim report.
b. Financial statements are also known as annual records.
c. Financial statements are historic.

• A. Both (a) and (b)
• B. Both (a) and (c)
• C. Both (b) and (c)
• D. A, B, C

Answer 1

The correct option is C Both (b) and (c)

Financial statement of companies are summarized financial reports which provide the operating results and financial positions of the companies. Financial statements are based on historical data e.g. ratio analysis. Financial statements are also known as annual records because they are prepared on annual basis.