Impact on any of elements of the balance sheet

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Please write 150 words minimum for each question

1. Some events that occur within a business do not have an impact on any of the elements of the balance sheet. Why?

2. What are the two main sources of equity reported on a balance sheet and how do they differ?

3. Explain how both liabilities and equities can be thought of as claims against assets.

4. When is revenue earned and therefore should be recognized?

5. When a company pays $10,000 for insurance that will cover it for two years, the transaction is not immediately recognized as an expense. Explain why.

6. Distinguish between cash flows resulting from operating activities, financing activities, and investing activities.

Reference no: EM132284447

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