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2×BASIC FINANCIAL STATEMENTSChapter SummaryFinancial statements are the primary means of communicating financial information to users. Chapter 2 covers the income statement, balance sheet, and statement
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Basic financial statements typically include the balance sheet and the income statement.
All businesses, including corporations, partnerships, and sole proprietorships, are required to file basic financial statements.
Basic financial statements are typically prepared by a company's accounting department or by a hired accountant. The process involves gathering financial data, organizing it into the appropriate financial statements, and ensuring the accuracy of the information provided.
The purpose of basic financial statements is to provide stakeholders with information about a company's financial position, performance, and cash flows.
Basic financial statements must report information such as assets, liabilities, equity, revenues, expenses, and net income.
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