Which of the following financial statements reports owne3

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Hollywood High School *

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OPERATIONS

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Accounting

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Nov 24, 2024

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docx

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Which of the following financial statements reports owner’s equity as of the end of the accounting period? Select one: a. income statement and the balance sheet b. cash flow statement and the balance sheet c. statement of owner’s equity and the balance sheet d. cash flow statement and the income statement To solve this problem, we need to identify the financial statement that reports owner's equity as of the end of the accounting period. Let's analyze the options provided and explain the correct answer. The correct answer is: c. statement of owner's equity and the balance sheet The statement of owner's equity is a financial statement that shows the changes in owner's equity over a specific accounting period, such as a month, quarter, or year. It reports the beginning balance of owner's equity, any contributions or withdrawals, net income or loss, and the ending balance of owner's equity. Therefore, it specifically reports owner's equity as of the end of the accounting period. The incorrect options and their explanations are: a. income statement and the balance sheet The income statement reports revenues, expenses, and net income or loss for a specific accounting period. It does not directly report the owner's equity as of the end of the accounting period. The balance sheet, on the other hand, reports the financial position of a company at a specific point in time, presenting the assets, liabilities, and owner's equity. While the balance sheet includes owner's equity, it does not exclusively report owner's equity as of the end of the accounting period. b. cash flow statement and the balance sheet The cash flow statement reports the cash inflows and outflows of a company during a specific accounting period. It does not directly report the owner's equity as of the end of the accounting period. As mentioned earlier, the balance sheet includes owner's equity but does not exclusively report owner's equity as of the end of the accounting period. d. cash flow statement and the income statement As discussed above, the cash flow statement does not report the owner's equity as of the end of the accounting period. The income statement reports net income or loss for a particular accounting period and does not exclusively report owner's equity as of the end of the accounting period.
In conclusion, the financial statement that specifically reports owner's equity as of the end of the accounting period is the statement of owner's equity.
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