Final answer:
Assets and liabilities are listed on the Balance Sheet. Expenses and revenue are part of the Income Statement. The Cash Flow Statement reflects cash activity, and the Statement of Retained Earnings shows changes in retained earnings.
Step-by-step explanation:
Assets, liabilities, expenses, equity, and revenue are elements that are categorized into different financial statements in accounting. Assets and liabilities are displayed on the Balance Sheet.
This statement reflects the company’s financial position at a specific point in time by listing assets on one side and liabilities and equity (the net worth or owner’s equity) on the other. Essentially, the balance sheet shows what a company owns and what it owes, including the equity held by shareholders.
Expenses and revenue are part of the Income Statement, which summarizes a company’s financial performance over a period of time, commonly a quarter or a fiscal year. The income statement provides details on the company’s operations, such as the revenue generated from sales and the costs incurred in generating that revenue, including expenses.
The Cash Flow Statement is a financial statement that records how changes in balance sheet accounts and income affect cash and cash equivalents. It breaks the analysis down to operating, investing, and financing activities.
Finally, the Statement of Retained Earnings explains the changes in a company’s retained earnings over the reporting period. It starts with the beginning balance of retained earnings, adds net income or loss, and subtracts any dividends paid to shareholders.
Therefore, 2) Balance Sheet is correct answer.