1 which statement summarizes changes to parts of the balance sheet

1. Which statement summarizes and explains the changes in retained earnings during the accounting period?
2. How the income statement affects the balance sheet?
3. Which statement summarizes the results of the company's operations?
4. What are the 4 basic financial statements?
5. What are the three basic phases of the accounting process?
6. What are the 9 basic contents of a statement of income?
7. What comes first income statement or balance sheet?
8. What happens if financial statements are incorrect?
9. How do you know if a balance sheet is correct?
10. Which of the following financial statements is divided into major categories of operating investing?
11. Which financial statement summarizes the changes in the balance of each stockholders equity account?
12. Which of the following is the best definition of an asset?

Which statement summarizes and explains the changes in retained earnings during the accounting period?

The statement of owner's equity—also called the statement of retained earnings—shows the change in retained earnings between the beginning and end of a period (e.g., a month or a year). The balance sheet reflects a company's solvency and financial position.

How the income statement affects the balance sheet?

A negative net income will cause stockholders' equity to decrease. ... The income statement accounts are temporary accounts because their balances will be closed at the end of each accounting year to the stockholders' equity account Retained Earnings.

Which statement summarizes the results of the company's operations?

Income statement summarizes the results of the firm's operations at a specific point in time.

What are the 4 basic financial statements?

There are four main financial statements. They are: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders' equity. Balance sheets show what a company owns and what it owes at a fixed point in time.

What are the three basic phases of the accounting process?

The process of going from sales to end-of-month statements has several steps, all of which must be executed correctly for the entire accounting cycle to function properly. Part of this process includes the three stages of accounting: collection, processing and reporting.

What are the 9 basic contents of a statement of income?

The statement displays the company's revenue, costs, gross profit, selling and administrative expenses, other expenses and income, taxes paid, and net profit in a coherent and logical manner.

What comes first income statement or balance sheet?

3. Balance sheet. After you generate your income statement and statement of retained earnings, it's time to create your business balance sheet. Again, your balance sheet lists all of your assets, liabilities, and equity.

What happens if financial statements are incorrect?

Investors rely on financial statements to assess a company's worth, while management relies on internal financial reports for sound decision making. Inaccurate reports can lead you to make bad decisions or make your company look less valuable than it is. They can also land you in legal hot water.

How do you know if a balance sheet is correct?

For the balance sheet to balance, total assets should equal the total of liabilities and shareholders' equity. The balance between assets, liability, and equity makes sense when applied to a more straightforward example, such as buying a car for $10,000.

Which of the following financial statements is divided into major categories of operating investing?

Which of the following financial statements is divided into major categories of operating, investing, and financing activities? The balance sheet.

Which financial statement summarizes the changes in the balance of each stockholders equity account?

The statement of retained earnings – also called statement of owners equity shows the change in retained earnings between the beginning and end of a period (e.g. a month or a year). The balance sheet reflects a company's solvency and financial position.

Which of the following is the best definition of an asset?

Which of the following is the best definition of an asset? An asset is something of value that is owned and can be used productively.