Accounting Discussion Question
Post a 200-300-word response to the following discussion question.
#1 What are the financial statements? What information does each one offer? How are they used to communicate financial health? Which financial statement is most important? Why?
Post a 200-300-word response to the following discussion question.
#2 Why are adjusting journal entries necessary? What would be the effect if a corporation failed to journalize and post adjusting entries?
Post a 200-300-word response to the following discussion question.
#3 What is the difference between a prepaid expense and an accrued expense? Provide an example.
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Question One
Financial statements show the results of operation and financial position of a company or organization. The financial statements which include the balance sheet, income statement, statement of changes in equity and cash flow statement indicate the details of financial operation of a company. The statements present a generalized financial performance and financial health of an organization. The balance sheet is a financial statement that shows whether a company is in a position to meet its debt obligation, its financial flexibility to obtain capital and ability to dispense cash in the form of dividends to stakeholders (Taparia, 2004). The income statement which is also referred profit & loss statement exhibits the profitability and the earnings……………..
APA
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