The financial statements of a company provide information about the company for a period of time (e.g. FYE – For the Year Ended) or at a point in time (e.g. at or on a particular date). Which of the following correctly identifies the type of dating provided by the individual financial statements?

Income statement	Balance sheet	State of cash flow
Period	Point	Point
Point	Period	Point
Point	Period	Period
Period	Point	Period
None of the other answers

2. Why is it important for a company to record accrued revenues and expenses by preparing to adjust entries at the end of an accounting period?

To transfer net income and dividends to retained earnings.

To ensure that all income statement and balance sheet accounts are up-to-date at the end of the period.

Adjusting entries are necessary to bring the general ledger accounts in line with the budget.

Adjusting entries are never required.