Which financial statement matches asset increases from operating a business with asset decreases from operating the business? statement of changes in equity. balance sheet. statement of cash flows. income statement.

Income statement

Explanation:

Statement of change in equity: It records beginning balance of equity, ending balance of equity, net income or loss, dividend paid if any.

Balance sheet: It records the assets and the liabilities side of the balance sheet which equals to

Total assets = Total liabilities + Stockholder equity

Statement of cash flows: It records three types of activities:

1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

2. Investing activities: It records those activities which include purchase and sale of the fixed assets

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.  

Income statement: It records all income and expenses of a particular period.

In the given question, the increase in assets records under the revenue part whereas if the asset decreases, it records under expenses part of the income statement.  

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