Comprehensive Guide to Financial Statements: Assets, Liabilities, Equity, and More

Which financial statement contains assets?

Balance Sheet

Which financial statement contains liabilities?

Balance Sheet

Which financial statement contains equity?

Balance Sheet

Which financial statement contains revenue?

Income Statement

Which financial statement contains expenses?

Income Statement

Which financial statement contains dividends?

Statement of Retained Earnings

Which financial statement contains gains?

Income Statement

Which financial statement contains losses?

Income Statement

Which financial statement reports other comprehensive income?

Statement of Comprehensive Income

What is another name for the Income Statement?

Profit and Loss Statement (P&L)

What is another common name for the Income Statement?

Statement of Operations

What is the nonprofit equivalent of the Income Statement?

Statement of Activities

What is another name for the Balance Sheet?

Statement of Financial Position

What is a less common name for the Balance Sheet?

Statement of Financial Condition

What is another name for the Statement of Retained Earnings?

Statement of Owner's Equity

What is another name for the Statement of Retained Earnings used by corporations?

Statement of Changes in Equity

What is the nonprofit equivalent of the Statement of Retained Earnings?

Statement of Changes in Net Assets

What is another name for the Statement of Cash Flows?

Cash Flow Statement

What is the order of the main financial statements?

Income Statement → Statement of Retained Earnings → Balance Sheet → Statement of Cash Flows

What is the general order of items on the Income Statement?

Revenue → Cost of Goods Sold → Gross Profit → Expenses → Net Income

What is the general order of sections on the Balance Sheet?

Assets → Liabilities → Equity

What are the three sections of the Statement of Cash Flows?

Operating → Investing → Financing

Where does Accumulated Depreciation appear?

Balance Sheet (Contra Asset)

Where does Allowance for Doubtful Accounts appear?

Balance Sheet (Contra Asset)

Where does Accumulated Amortization appear?

Balance Sheet (Contra Asset)

Where do Sales Returns and Allowances appear?

Income Statement (Contra Revenue)

Where do Sales Discounts appear?

Income Statement (Contra Revenue)

Where does Treasury Stock appear?

Balance Sheet (Contra Equity)

Where does Discount on Bonds Payable appear?

Balance Sheet (Contra Liability)

Which account types are permanent accounts?

Assets

Which account types are temporary accounts?

Revenue

What happens to temporary accounts at the end of an accounting period?

Close to Retained Earnings

Which accounts carry forward to the next accounting period?

Permanent Accounts

Which accounts reset to zero each accounting period?

Temporary Accounts

What is the accounting equation?

Assets = Liabilities + Equity

What equation calculates net income?

Revenue − Expenses = Net Income

What equation updates retained earnings?

Beginning Retained Earnings + Net Income − Dividends = Ending Retained Earnings

What equation describes equity changes?

Beginning Equity + Investments + Net Income − Dividends = Ending Equity

What equation explains the change in cash on the cash flow statement?

Beginning Cash + Net Change in Cash = Ending Cash

What does the Income Statement show?

Profitability over a period

What does the Balance Sheet show?

Financial position at a specific point in time

What does the Statement of Retained Earnings show?

Changes in retained earnings during the period

What does the Statement of Cash Flows show?

Cash inflows and outflows during the period

What does the nonprofit Statement of Activities show?

Changes in net assets

What does the nonprofit Balance Sheet show?

Financial position of the organization