Financial Statement Elements You have been asked by a friend with a new business to answer a few questions on financial reporting. Your friend has asked you to indicate whether each of the following items will be reported in the business’s balance sheet (BS), income statement (IS), neither the balance sheet nor income statement (N), or both the balance sheet and income statement (B):

. Revenues.

. Liabilities.

. Expenses.

. Cash flows from financing activities.

Net income.

. Retained earnings.

. Equities.

. Assets held by the business entity.

. Earnings distributed to owners during the period.

. Assets held by owners.