Which of the following statements describes the balance sheet?

A) It reports a company's revenues and expenses.
B) Assets are generally reported on the balance sheet at the cost incurred to acquire them.
C) Stockholders' equity includes only retained earnings.
D) It reports a company's cash flow from operations.

Retained Earnings

The portion of a company's profits not distributed as dividends to shareholders, but instead reinvested in the business or held as reserves.

Assets

Assets are resources owned by a business or individual, which provide economic value or are expected to generate future benefit.

Revenues

The income generated from normal business operations and includes discounts and deductions for returned merchandise.