E describe the relationships among the income statement, balance sheet, statement of cash flows, and statement of owners’ equity; Flashcards
Describe the relationships between the income statement, balance sheet, statement of cash flows statement of owners equity.
1
Q
Balance sheet and CF statement relationship
A
Cash from BS is described on the CF statement
2
Q
BS and OE
A
BS>OE reflected on OE statement
3
Q
Inc Statement and OE
A
Inc Stmt>N.I. also reflected on OE
4
Q
What was IS breakdown?
A
R n Expenses
5
Q
What does OE explain?
A
Explains how reported NI came about
6
Q
What does OE breakdown?
A
Breaksdown the composition and changes in OE that’s on BS
7
Q
What does RE report?
A
Changes in a company’s retained earnings during a period of time
