Answer:
Balance Sheet
Explanation:
At the end of a financial year, the accountant needs to prepare the income statement, cash flow statement, equity (retained earnings), and balance sheet statement. Each of these statements relates to a company's financial performance and status.
- The income statement reports the total profit or losses that the business has made in the financial period.
- The cash flow statement records and tracts the movement of cash in and out of business. It shows cash balances at the end of the period.
- The equity statement indicates the changes, if any, on retained earnings in that period.
- The balance sheet reports the values of assets, liabilities, and equity at the end of a period. Its preparation is guided by the accounting equation that assets equal liabilities plus equity.
