Preparing financial statements for a merchandising business, Accounting Basics

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Preparing financial statements for a merchandising business

(The statements are completed in this order.)

1.  Income Statement (contains only expenses and revenue and shows net loss or gain)

2.  Statement of Owner's Equity (summarizes the changes in owner's equity during accounting period)

3.  Balance Sheet (lists a firm's liabilities, assets and owner's equity as of a certain date)

 


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