What do you understand by the following terms?
Elements of Financial Statements:
The financial statements prepared by a firm for each accounting period include the income statement, balance sheet, and statement of cash flows. The reports are prepared by applying the accounting principles to ensure they provide a fair view of the financial performance of the entity. The financial statements are prepared by taking into account the value of the various elements of the business including; revenues, expenses, assets, liabilities, and owner's equity.
Answer and Explanation: 1
a) Liabilities represent financial obligations payable to another entity or individual by a business. Liabilities are simply existing debts that arise...
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fromChapter 2 / Lesson 1
Learn about the types and importance of financial statements. See the financial statement definition, and study the purpose of financial statements.