Accounting Basics: Financial Statements and Business Types

Source documents, such as invoices and receipts

To ensure that the debit and credit entries are equal and to prepare the financial statements

A sole trader is a single owner, while a partnership has two or more owners

<p>Assets = Capital + Liabilities</p> Signup and view all the answers

<p>Land or building</p> Signup and view all the answers

<p>It can be quickly converted into cash without losing value</p> Signup and view all the answers

<p>A debt that a business has to pay off</p> Signup and view all the answers

<p>A current liability is a debt that must be paid within a short period of time, while a long-term liability is a debt that can be paid over a longer period</p> Signup and view all the answers

<p>To show the revenues and expenses of a business over a certain period of time</p> Signup and view all the answers

<p>To show the inflows and outflows of cash and cash equivalents over a certain period of time</p> Signup and view all the answers