Chapter 5, Problem 5.5DIE

To determine

Financial Statement: The statement which reports all the financial activities of the organization in year is called financial statement. Financial statements give the information about the financial performance and financial condition of the organization throughout the year to the users of the financial statements.

Balance sheet: It is a part of financial statements that lists the company’s assets, liabilities and shareholders’ fund. It is prepared at the end of accounting periods and informs about the financial position on that day.

Income statement: A part of financial statement that lists the income and expenses of business for an accounting year is called income statement. It is prepared at the end of accounting period to know the profitability of the business.

To indicate: Financial statement and classification on which given items should be reported.