In this module, you will learn about the purpose, structure and content of the four basic statements. The$$income statement$$reports the net amount that a business earned $($net income$)$ over a period of time by subtracting the costs of running the business $($expenses$)$ from the total amount earned $($revenues$).$ The$$statement of retained earnings$$explains changes in the Retained Earnings account over a period of time by considering increases $($from net income$)$ and decreases $($from dividends to stockholders$).$ The$$balance sheet$$reports what the business owns $($reported as assets$)$ at a particular point in time and how much of the financing for these assets came from creditors $($reported as liabilities$)$ and stockholders $($reported as stockholders' equity$).$ The$$statement of cash flows$$explains changes in the cash account over a period of time by reporting inflows and outflows of cash from the business's operating, investing, and financing activities.