Prepare The Financial Statements

Front 1

The four primary financial statements are:

Back 1

1. the income statement
2. statement of owner’s equity
3. balance sheet
4. statement of cash flows

Front 2

lists revenues and expenses and shows net income—revenues minus expenses.

Back 2

The income statement (statement of earnings or statement of operations)

Front 3

shows the changes that take place in owner’s equity during the period from net income or net loss, withdrawals, and owner’s investments.

Back 3

The statement of owner’s equity

Front 4

ists all assets, liabilities, and owner’s equity as of a specific date.

Back 4

The balance sheet

Front 5

reports the cash receipts and payments during a period as well as the net cash inflow or outflow and ending cash balance.

Back 5

The statement of cash flows

Front 6

has a heading that includes the name of the business, the name of the statement, and the date or time period covered by the statement.

Back 6

Each financial statement

Front 7

The date of the balance sheet is

Back 7

the last day of the accounting period

Front 8

The statement of owner’s equity, income statement, and statement of cash flows cover

Back 8

an entire accounting period.