Question

Which of the following statements are correct (Select all that apply): Select one or more: A. A balance sheet reports on investing and financing activities. B. An income statement reports on financing activities. C. The statement of equity reports on changes in the accounts that make up equity. D. The statement of cash flows reports on cash flows from operating, investing, and financing activities over a period of time. E. A balance sheet reports on a company's assets and liabilities over a period of time.

Answer 1

Given Options

A. [] Balance Sheet reports on investing and finance activities.

B. [] An income statement reports on financing activities

C. [] The statement of equity reports on changes in the accounts that make up equity

D. [] The statement of cash flow reports on cash flow from operating, investing and financing activities over a period of time.

E. [] A balance sheet reports on a company's assets and liabilities over a period of time

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Here are the definitions of the given terms in the question

Balance Sheet - A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time. Clearly, this means that option E is correct and A is not correct

Income Statement - It is the statement of revenue and expense, the income statement primarily focuses on the company’s revenues and expenses during a particular period. This means that option B is not correct

Cash Flow Statement - A cash flow statement typically breaks out a company's cash sources and uses for the period into three categories: cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities. Therefore, option D is correct

Statement of Equity - A statement of shareholders' equity details the changes within the equity section of the balance sheet over a designated period of time. Therefore, option C is correct.

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So the correct choices are C,D,E