Financial Statements

The income statement shows a business's assets and liabilities.

True

False

Current assets are things that are owed by the business and are waiting to be paid.

True

False

The balance sheet shows the total investment that has gone into the business.

True

False

Net assets on a balance sheet represent everything a business owns plus everything it owes, indicating the total worth of the business.

True

False

Total equity on a balance sheet reflects the total investment that has gone into the business, including owner's savings, share capital, reserves, and retained profits.

True

False