What is another name for a financial statement?

What is another name for a financial statement?

• A. Balance sheet
• B. Income statement
• C. Cash flow statement
• D. Statement of changes in equity

Answer: (A)

A financial statement is a formal report that presents a company’s financial position and results. The balance sheet is the primary financial statement that lists what the company owns (assets) and owes (liabilities) along with owner’s equity, all at a specific date. Because it provides a concise snapshot of the business’s financial position, it’s often what people mean when they refer to “a financial statement.” The other options describe separate reports: the income statement shows performance over a period (revenues and expenses), the cash flow statement shows cash movements over a period, and the statement of changes in equity tracks changes in owner’s equity over time. So the balance sheet is the one commonly thought of as the financial statement.

A financial statement is a formal report that presents a company’s financial position and results. The balance sheet is the primary financial statement that lists what the company owns (assets) and owes (liabilities) along with owner’s equity, all at a specific date. Because it provides a concise snapshot of the business’s financial position, it’s often what people mean when they refer to “a financial statement.” The other options describe separate reports: the income statement shows performance over a period (revenues and expenses), the cash flow statement shows cash movements over a period, and the statement of changes in equity tracks changes in owner’s equity over time. So the balance sheet is the one commonly thought of as the financial statement.