What are the purposes of the four financial statements used in an audited financial report? Which one is the most meaningful and why? Would your answers be different if they were not publicly owned? Explain how you attained the outcome.
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An organization’s income statement demonstrates how revenue earned from the sale of products and services before expenses are taken out is turned into the net income, the end result after revenue and expenses are accounted for. The income statement documents whether the company made a profit during a reported period of time.
The balance sheet is a summary of a company’s balances as of a specific date. It is composed of 3 parts: assets, …
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