Chapter 1, Problem 1.3EYCT

(a)

To determine

Financial statement

A financial statement is the complete record of financial transactions that take place in a company, at a particular point of time. It provides important financial information like assets, liabilities, revenues and expenses of the company to its internal and external users. It helps them to know the exact financial position of the company. There are four basic financial statements; they are:

Figure (1)

To identify: Total assets, accounts receivable (net), net sales, and net income of Incorporation A (as at December 31, 2014) and Incorporation WM (as at December 31, 2015).

(b)

To determine

To draw conclusion: concerning the above data’s of Incorporation A, and Incorporation WM.