Financial Statements Flashcards
To ensure students understand the difference between the financial statements and know which accounts appear on which statement and in which order.
The ________ reports revenues and expenses for a period of time such as a year or a month
Income Statement
The income statement is one of the three primary financial statements used to assess a company’s performance and financial position (the two others being the balance sheet and the cash flow statement). The income statement summarizes the revenues and expenses generated by the company for the reporting period.
Does the heading of a balance sheet indicate a period of time or a point in time?
Which financial statement’s structure is closest to that of the basic accounting equation?
Balance Sheet
Assets = Liabilities + Owner’s Equity
(ALOE)
Does the heading of a income statement indicate a period of time or a point in time?
Period of time
The financial statement that reports the assets, liabilities, and stockholders’ (owner’s) equity at a specific date is the
Balance Sheet
The financial statement of a business or institution that lists the assets, debts, and owners’ investment as of a specific date. Assets are ordered according to how soon they will be converted into cash, and debts according to how soon they must be paid.
