2

Types of Financial Statements

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Learning Objectives

By the end of this chapter, you should be able to:

• Identify the four key financial statements.

• Describe what each type of financial statement presents to the reader.

• Identify the major components of each type of financial statement.

• State the basic accounting equation.

• State the formula for the statement of retained earnings.

• List the things to look for in the notes to the financial statements.

INTRODUCTION

Chapter 2 will familiarize you with the four key financial statements: the balance sheet, the income statement, the statement of retained earnings, and the statement of ...

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