Accounting Statements

Question 1

More common accounting reports:

Answer 1

• Balance Sheet
• Profit and Loss Statement (or income statement)
• Cash Flow Statement

Question 2

Balance Sheet

Answer 2

• Summarizes all assets and liabilities, and shows the financial position of a business.

Net Worth = Total Assets - Total Liabilities

Owner’s Equity = money invested in a business by owners or stockholders.

Total Assets = Total Liabilities + (Net Worth or Owner Equity)

Question 3

Profit and Loss Statement (Income Statement)

Answer 3

• List all income and expenses of a business for a certain period of time.