When preparing the financial statements from a spreadsheet that shows the results of a transaction analysis:
A)a statement of retained earnings is not required.
B)the balance sheet reports the beginning balance of retained earnings.
C)assets,liabilities,and stockholders' equity are reported on the balance sheet.
D)revenues,expenses,and dividends are reported on the income statement.

Question

Quizplus · Accepted Answer

The balance sheet reports the assets, liabilities, and stockholders' equity, which are all derived from the transaction analysis. The statement of retained earnings may be prepared separately, but it is not always required. Revenues, expenses, and dividends are reported on the income statement.

When Preparing the Financial Statements from a Spreadsheet That Shows