Financial statement:
The Financial statement is the part of
Assets:
Assets are the resources that a company needs to run the business. An asset is economic resources of the company.
Liabilities:
Liabilities are generally the amount owned by the company from lenders, suppliers, or a bank. Liabilities are the burden on the company that they have to pay to others.
Equity:
The Company needs finance to run the business. Equity is one of the methods through which the company raises the capital.
The assets, liabilities and equity relation is known as the accounting equation. Assets are the resources of the company and that increase as business expand whereas liabilities are the burden on a company that has to pay in future; Equity means the owner claim on assets. An accounting equation represents the Assets of the Company are equal to the liabilities and Equity of the company
a.
To identify: The amount of assets liabilities and equity.
b.
To verify:
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Chapter 1 Solutions
Gen Combo Ll Financial Accounting Fundamentals; Connect Access Card
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