Question

Identify the appropriate financial statement element(s) for each item listed below.

a) Assets, Liabilities
b) Revenue, Expenses
c) Equity, Cash flow
d) Profit, Loss

Answer 1

The appropriate financial statement elements for each item listed are as follows: Assets, Liabilities; Revenue, Expenses; Equity, Cash flow; Profit, Loss.

Step-by-step explanation:

The appropriate financial statement elements for each item listed are as follows:

1. Assets, Liabilities: These elements represent the resources owned by a company (assets) and the obligations or debts it owes to others (liabilities).
2. Revenue, Expenses: These elements represent the income generated by a company (revenue) and the costs incurred to operate the business (expenses).
3. Equity, Cash flow: Equity represents the residual interest in the assets of a company after deducting liabilities, and cash flow represents the movement of cash in and out of the business.
4. Profit, Loss: Profit is the positive financial result of a company's operations, where revenue exceeds expenses, and loss is the negative financial result where expenses exceed revenue.