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.) Statement 1: ABC Company Statement of Cash Flows Income Statement Balance Sheet ht appears on the next financial statement? Statement of Retained Earnings 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.) Statement 1: ABC Company Given point in time res the Period of time pncial statement appears on the next financial statement? 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.) Statement 1: ABC Company This statement summarizes the Which item from this financial st assets. liabilities, and equity ancial statement? changes in retained earnings sources and uses of cash This statement shows how profitable a con revenues and expenses ld to as the profit and loss (PAL) statement. Statement 2: 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.) Statement 1: ABC Company This statement summarizes the Which item from this financial statement appears on the next financial statement? Cash balance Dividends This stater company is. It is sometimes referred to as the profit and loss (P&L) statement. Total assets Statement Ending retained earnings Revenues and expenses Net Income (loss) This statement shows how profitable a company is. It is sometimes referred to as the profit and loss (P&L) statement Statement 2: ABC Company Income Statement Statement of Retained Earnings Statement of Cash Flows ment appears on the next financial statement? Balance Sheet This statement shows how much, if any, of the net income is distributed to the owners. It is sometimes expanded to show changes to all equity items. Statement 3: This statement shows how profitable a company is. It is sometimes referred to as the profit and loss (P&L) statement. Statement 2: ABC Company Period of time rizes the Given point in time fnancial statement appears on the next financial statement? This statement shows how much, if any, of the net income is distributed to the owners. It is sometimes expanded to show changes to all equity items. Statement 3: ABC Company This statement summarizes the Which item from this financial statement appears on the next financial statement? Ch 06: Assignment - Accounting for Financial Management This statement shows how profitable a company is. It is sometimes referred to as the profit and loss (P&L) statement Statement 2: ABC Company This statement summarizes the Which item from this financial stassets, liabilities, and equity ancial statement? changes in retained earnings revenues and expenses This statement shows how much, if any, of sources and uses of cash the owners. It is sometimes expanded to show changes to all equity items. Statement 3: ABC Company This statement summarizes the Which item from this financial statement appears on the next financial statement? This statement shows how profitable a company is. It is sometimes referred to as the profit and loss (P&L) statement. Statement 2: ABC Company This statement summarizes the Which item from this financial statement appears on the next financial statement? Total assets Dividends This staten of the net income is distributed to the owners. It is sometimes expanded to show changes to all equity items. Net income (loss) Statement Cash balance Revenues and expenses Ending retained earnings This statement summarizes the Which item from this financial statement appears on the next financial statement? This statement shows how much, if any, of the net income is distributed to the owners. It is sometimes expanded to show changes to all equity items. Statement 3: ABC Company Balance Sheet Income Statement Statement of Cash Flows ment appears on the next financial statement? Statement of Retained Earnings This statement reflects the accounting equation. It is sometimes referred to as the statement of financial position Statement 4: ABC Company This statement summarizes the This statement is created using information from two other financial statements. Therefore, it is created last. This statement shows how much, if any, of the net income is distributed to the owners. It is sometimes expanded to show changes to all equity items. Statement 3: ABC Company Period of time rizes the Given point in time nancial statement appears on the next financial statement? This statement reflects the accounting equation. It is sometimes referred to as the statement of financial position Statement 4: ABC Company This statement summarizes the This statement is created using information from two other financial statements. Therefore, it is created last. This statement shows how much, if any, of the net income is distributed to the owners. It is sometimes expanded to show changes to all equity items. Statement 3: ABC Company This statement summarizes the Which item from this financial ste sources and uses of cash ancial statement? assets, liabilities, and equity changes in retained earnings This statement reflects the accounting equl revenues and expenses as the statement of financial position. Statement 4: ABC Company This statement summarizes the This statement shows how much, if any, of the net income is distributed to the owners. It is sometimes expanded to show changes to all equity items. Statement 3: ABC Company This statement summarizes the Which item from this financial statement appears on the next financial statement? Revenues and expenses Cash balance This staten Jequation. It is sometimes referred to as the statement of financial position. Dividends Statement Net income (loss) Ending retained earnings Total assets This statement summarizes the