Notes payable, current assets, retained earnings, and accumulated depreciation are found on which financial statement?

• A. Balance Sheet
• B. Income Statement
• C. Statement of Changes in Owners' Equity
• D. Statement of Cash Flows

Answer: (A)

The balance sheet is a snapshot of a company’s financial position at a specific moment, showing assets, liabilities, and equity. Current assets belong on the asset side, notes payable is a liability, and retained earnings is part of shareholders’ equity. Accumulated depreciation is a contra-asset account that reduces the book value of long-term assets on the asset side. Because all of these items relate to the company’s resources and obligations at a point in time, they appear on the balance sheet.

The other statements don’t fit these items as they’re described. The income statement reports performance over a period (revenues and expenses) and would show depreciation expense, not accumulated depreciation. The statement of changes in owners’ equity tracks changes in equity accounts over a period, not the asset and liability balances. The statement of cash flows focuses on cash movements.