Which of the following financial statements includes the assets, liabilities, and equity accounts of a business?
A. Income statement
B. Balance sheet
C. Form W4
D. Operating budget
B.
Right.
To determine the correct answer, you can analyze the options given and identify which statement specifically includes assets, liabilities, and equity accounts of a business.
A. The income statement primarily focuses on revenue, expenses, and profit or loss generated by a business over a certain period. It does not directly include assets, liabilities, and equity accounts.
B. The balance sheet presents an overview of a business's financial position at a specific point in time. It includes the assets, liabilities, and equity accounts, making it the correct answer in this case.
C. Form W4 is a tax form used by employees to provide their employers with information regarding their tax withholdings. It is not related to financial statements.
D. The operating budget is a financial plan determining the anticipated income and expenses of a business over a specific period. It does not include detailed information about assets, liabilities, and equity accounts.
Therefore, option B, the balance sheet, is the financial statement that includes the assets, liabilities, and equity accounts of a business.