To determine the source of a company's assets, on which financial statement will you look?
A)Balance sheet only
B)Income statement only
C)Both the balance sheet and the income statement
D)Both the income statement and the statement of retained earnings

Question

Quizplus · Accepted Answer

The balance sheet reports a company's assets, liabilities, and equity at a specific point in time, showing what the company owns and owes. Therefore, to determine the source of a company's assets, we should look at the balance sheet. The income statement reports a company's revenues and expenses over a period of time, while the statement of retained earnings shows changes in a company's retained earnings balance over a period of time.

To Determine the Source of a Company's Assets, on Which