Which one of the following financial statements shows a relationship between assets and liabilities plus owners' equity?
A) income statement
B) statement of cash flows
C) balance sheet
D) statement of retained earnings

Question

Quizplus · Accepted Answer

The balance sheet shows the relationship between assets (what the company owns) and liabilities plus owners' equity (what the company owes to others and what is left over for the owners). The income statement shows the revenue and expenses and whether the company made a profit or loss. The statement of cash flows shows the movement of cash in and out of the company. The statement of retained earnings shows the changes in the retained earnings account over a period of time.

Which One of the Following Financial Statements Shows a Relationship