Which of the following financial statements reports that total assets are equal to total liabilities plus total stockholders' equity?
A) Statement of retained earnings
B) Statement of cash flows
C) Income statement
D) Balance sheet

Question

Quizplus · Accepted Answer

The balance sheet is the financial statement that reports the accounting equation, which states that assets equal liabilities plus equity. This statement provides a snapshot of the company's financial position at a given point in time. The other financial statements do not report this equation. The statement of retained earnings reports changes in the company's earnings that result from dividends, net income, and other adjustments. The income statement reports revenues, expenses, and net income or loss for a given period. The statement of cash flows reports the inflows and outflows of cash and cash equivalents for a period of time.

Which of the Following Financial Statements Reports That Total Assets