Third Financial Statement
Balance Sheet
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basic accounting statement (A=L+E)
communicates the financial position of a business on a certain date
step one of accounting cycle
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Analyze the Transaction to determine the effect of the transaction
, separate entity
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activities of a business are separate and distinct from its owners
- separate business and personal accounts
GAAP: generally accepted accounting principles
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developed to provide guidelines for financial accounting practices
step seven of the accounting cycle
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prepare adjusted trial balance to ensure all debits equal credits
Reliable
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can be independently verified to be accurate
Balance Sheet
Give this one a try later!
basic accounting statement (A=L+E)
communicates the financial position of a business on a certain date
step one of accounting cycle
Give this one a try later!
Analyze the Transaction to determine the effect of the transaction
, separate entity
Give this one a try later!
activities of a business are separate and distinct from its owners
- separate business and personal accounts
GAAP: generally accepted accounting principles
Give this one a try later!
developed to provide guidelines for financial accounting practices
step seven of the accounting cycle
Give this one a try later!
prepare adjusted trial balance to ensure all debits equal credits
Reliable
Give this one a try later!
can be independently verified to be accurate
