Question

Which of the following statements are correct (Select all that apply): Select one or more: A. A balance sheet reports on investing and financing activities. B. An income statement reports on financing activities. C. The statement of equity reports on changes in the accounts that make up equity. D. The statement of cash flows reports on cash flows from operating, investing, and financing activities over a period of time. E. A balance sheet reports on a company's assets and liabilities over a period of time.

Answer 1

Answer: Statement C and Statement D

Explanation:

A. A balance sheet reports assets liabilities and capital balances of an entity at a specific point of time.

B. An income statement reports on the revenues earned and the expenses incurred to earn those revenues for a period of one year.

C. Statement of equity reports changes in equity.

D. Cash flow statement shows inflow and outflow of cash from operating , investing and financing.

E. A balance sheet reports companies assets and liabilities at the end of the year.