Below are the four primary financial statements. Match each financial statement with its primary purpose to investors.
Financial Statements
_____________1. Income statement
_____________2. Statement of stockholders’ equity
_____________3. Balance sheet
_____________4. Statement of cash flows
Purposes
a. Provides measures of resources and claims to those resources at the end of the year.
b. Provides an indication of the company’s ability to make a profit during the current year.
c. Provides a measure of net increases and decreases in cash for the current year.
d. Shows changes in owners’ claims to resources for the current year.