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Financial statements will keep track of the financial results of the business’ activities.
There are four different formats that will be used to assist in the tracking of all things financial in the business and they are: balance sheet, income statement, retaining earnings statement, and the statement of cash flows. These statements outline the financing, investing, and operating of the business. Financial statements incorporate certain assumptions and principals to make the statements clear and concise so that all users both internal and external can understand and decipher which statements meet there needs...
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