Which one of the following financial statements conveys a relationship of equality between assets and liabilities plus owners' equity?
A)income statement
B)statement of cash flows
C)balance sheet
D)statement of retained earnings

Question

Quizplus · Accepted Answer

The balance sheet is the financial statement that conveys a relationship of equality between assets and liabilities plus owners' equity. This is because the balance sheet shows the company's assets (what it owns) and its liabilities plus owners' equity (what it owes to others and what is left over for the owners). The equation is assets = liabilities + owners' equity, which represents a balance or equality between the two sides of the equation. The income statement, statement of cash flows, and statement of retained earnings do not convey this relationship of equality.

Which One of the Following Financial Statements Conveys a Relationship