Under Regulation S-X, which of the following is true regarding the financial statements included in an annual Form 10-K filing?

Answer options:

Balance sheets for 3 years; Income statements for 2 years.

Balance sheets for 2 years; Income statements for 3 years.

Balance sheets for 2 years; Income statements for 2 years.

Balance sheets for 1 year; Income statements for 3 years.

How to approach this question

Memorize: 2 Balance Sheets, 3 of everything else.

Full Answer

B.Balance sheets for 2 years; Income statements for 3 years.✓ Correct

Regulation S-X requires audited Balance Sheets for the 2 most recent fiscal years and audited Statements of Income, Cash Flows, and Changes in Equity for the 3 most recent fiscal years.

Common mistakes

Thinking it's 2 and 2 or 3 and 3.

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