Question

Discuss three of the following statements in a financial statement and report: A) Balance Sheet; B) Income Statement; C) Statement of Retained Earnings; D) Statement of Cash Flows.

Answer 1

Answer:

A) Balance Sheet: reports the assets, liabilities and shareholders' equity at a given point in time. Assets = Liabilities + Shareholders' equity

B) Income Statement: reports the profits or losses = total revenues - total costs, over a specific period of time

C) Statement of Retained Earnings: reports the changes in the retained earnings account during the accounting period, it shows how net income increases retained earnings and how dividends decrease it.

Explanation: