Hi! Please help me define some accounting terms

Question

1. a more descriptive title for the balance sheet
2. another name for income statement
3. 2 synonyms for the owner's equity
4. What is the function of an income statement
5. What is the function of a balance sheet

Answer 1

1. A Balance Sheet reports the Assets, Liabilities, and Stockholder's Equities of a company at a Point in Time.
2. Another name for an Income Statement is a Profit and Loss statement. The Income Statement presents revenues and expenses and the resulting net income or net loss for a Period of Time.
3. 2 synonyms for the owner's equity: Net Assets or Net Worth.
4. The function of an income statement (profit and loss statement or earnings statement) is to show the firms' financial earnings performance (positive or negative) or a specific period of time.
5. The function of a Balance Sheet is to show the company or firm's financial status (Assets, Liabilities, and Stockholder's Equities) at a Point in Time. Assets show what an entity owns, Liabilities show what an entity owes, and equity shows the amount invested in the business.