Question

7. Relationships between the financial statements 

Financial statements provide information that is used for making decisions. There are four basic financial statements. This problem is designed to help you understand the purpose of each statement and how the statements Interact. 

There is a natural progression from one statement to the next. The following boxes represent the four financial statements. The set of financial statements is prepared at the end of each accounting period to communicate information about the company's operations during that period to its users. Use the selection lists to demonstrate your knowledge of the relationships between the statements. In the headings, you will need to select the appropriate statement name and time period.(Hint: Ask yourself if the statement covers a period of time or if it is a snapshot at a given point in time.) Then complete the blanks following the headings.) 

Answer 1

Statement 1:Statement of cash flows, period of time, sources and uses of cash, Cash Balance

Statement 2: Income Statement, Period of time, Summarizes Revenues and Expenses

Dividends appear on next statement

Statement 3: Statement of Retained Earnings, period of time, Changes in Retained Earnings, Ending Retained Earnings

Statement 4: Balance Sheet, given point in time, Assets, liabilities and equity, Total Assets appear in next Statement