Financial statements

Question 1

What is the order of the trial balance?

Answer 1

1. Assets
2. Liabilities
3. Equity
4. Revenues
5. Expenses

Question 2

What is included in the income statement?

Answer 2

-Revenue
-Expenses
-Cost of goods
-Operating expenses
-Depreciation

Question 3

What is included in the order of retained earnings?

Answer 3

Previous retained earnings balance + net income(or minus net loss) - dividends

Question 4

What is included in the balance sheet?

Answer 4

Current assets and plant assets both on the left (minus any depreciation)
Current liabilities and shareholders equity on the right

Question 5

What is included in the closing statements?

Answer 5

1. Closing out the revenue account
2. Closing out the expense account
3. Closing out the dividends account