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Q. Can you explain about balance sheet?
The balance sheet, sometimes called as the statement of financial position lists the liabilities, company's assets and stockholders' equity including dollar amounts as of a specific moment in time. That precise moment is the close of business on the date of the balance sheet. Observe how the heading of the balance sheet differs from the headings on the income statement and statement of retained earnings. A balance sheet is similar to a photograph it captures the financial position of a company at a particular point in time. The other two statements are meant for a period of time. As you study regarding the liabilities, assets and stockholders' equity contained in a balance sheet you will understand why this financial statement provides information about the solvency of the business.
It dates from the development of huge scale business and the advent of Joint Stock Company as a form of business that enables the public to participate in giving capital in return
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does immaterial items have to be recorded
XYZ Technology had $640,000 of retained earnings on December 31, 2010. The company paid common dividends of $50,000 in 2010 and had retained earnings of $500,000 on December 31, 20
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what is implication wrongly application of accounting concept#
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