Questions: Matching Question Each of the financial statements on the left are described on the right. Identify the description that goes with each financial statement. Reports the balance of assets, liabilities and equity at a point in time Reports the revenues and expenses incurred by a business for a period of time Identifies the cash inflows and outflows over a period of time Reports the changes in equity during a period of time

To match each financial statement with its correct description, let's first identify the four primary financial statements and their purposes:

1. Balance Sheet: This financial statement reports the balance of assets, liabilities, and equity at a specific point in time. It provides a snapshot of the company's financial position.

2. Income Statement: This statement reports the revenues and expenses incurred by a business over a period of time. It shows the company's profitability during that period.

3. Cash Flow Statement: This statement identifies the cash inflows and outflows over a period of time. It provides insights into the company's cash management and liquidity.

4. Statement of Changes in Equity: This statement reports the changes in equity during a period of time. It details how the equity section of the balance sheet has changed due to factors like net income, dividends, and other comprehensive income.

Now, let's match each description with the appropriate financial statement:

• Reports the balance of assets, liabilities, and equity at a point in time: Balance Sheet
• Reports the revenues and expenses incurred by a business for a period of time: Income Statement
• Identifies the cash inflows and outflows over a period of time: Cash Flow Statement
• Reports the changes in equity during a period of time: Statement of Changes in Equity

These matches align with the standard definitions and purposes of each financial statement.