Barb's Bakery
Barb Bowman fell into the baking business. It used to be a hobby. She made and sold cakes and cookies for birthdays and family events in the neighborhood and for friends' parties. Now, having opened the bakery, the business has taken off and Barb is wondering what sort of records she needs to keep.

-Which of these statements would describe what Barb's Bakery owns,what it owes to others,and how much value Barb has invested in it?
A)Income statement
B)Balance sheet
C)Statement of retained earnings
D)Statement of owner's equity

Question

Barb's Bakery
Barb Bowman fell into the baking business. It used to be a hobby. She made and sold cakes and cookies for birthdays and family events in the neighborhood and for friends' parties. Now, having opened the bakery, the business has taken off and Barb is wondering what sort of records she needs to keep.

-Which of these statements would describe what Barb's Bakery owns,what it owes to others,and how much value Barb has invested in it?
A)Income statement
B)Balance sheet
C)Statement of retained earnings
D)Statement of owner's equity

Quizplus · Accepted Answer

The balance sheet is a financial statement that provides information about an organization's assets, liabilities, and owner's equity at a specific point in time, making it the best option to obtain information about what Barb's Bakery owns, what it owes to others, and how much value Barb has invested in the business. The income statement provides information about an organization's revenues and expenses over a period of time, while the statement of retained earnings and the statement of owner's equity provide information relating to changes in an organization's equity.

Barb's Bakery Barb Bowman Fell into the Baking Business. It Used to Used