Match each of the following characteristics with the financial statement that best describes it. Each may be used more than once.
-A formal presentation of the accounting equation
A)Income statement
B)Balance sheet
C)Statement of owner's equity
D)Statement of cash flows

Question

Quizplus · Accepted Answer

The balance sheet is the financial statement that presents a formal presentation of the accounting equation, which is Assets = Liabilities + Owner's Equity. It provides a snapshot of a company's financial position at a specific point in time by showing its assets, liabilities, and owner's equity. The other financial statements may provide information about revenue and expenses (income statement), changes in owner's equity (statement of owner's equity), and cash inflows and outflows (statement of cash flows), but they do not explicitly present the accounting equation.

Match Each of the Following Characteristics with the Financial Statement