Financial Statements Flashcards
Income Statement
Presents the revenues and expenses and resulting net income or net loss for a specific period of time
Owner’s Equity Statement
Summarizes the changes in owner’s equity for a specific period of time
Balance Sheet
Reports assets, liabilities, and owner’s equity at a specific date
Statement of Cash Flows
Summarizes information about the cash inflows (receipts) and cash outflows (payments) for a specific period of time
Financial Statements in Order
Income Statement
Owner’s Equity Statement
Balance Sheet
Statement of Cash Flows
What does the income statement produce?
Net Income or Net Loss
What does the Owner’s Equity Statement require?
Net Income or Net Loss
What does the Balance Sheet require?
Ending balance of Owner’s Equity (Owner’s Capital)
What does the Statement of Cash Flows require?
The Cash amount shown on the Balance Sheet
Income Statement Involves?
Revenues & Expenses
Owner’s Equity Involves?
Owner’s Capital & Owner’s Drawings
Balance Sheet Involves?
Assets & Liabilities
Owner’s Equity
