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Financial statements only consider
- a)Assets expressed in monetary terms
- b)Liabilities expressed in monetary terms
- c)Assets expressed in non-monetary terms
- d)Assets and liabilities expressed in monetary terms
Correct answer is option 'D'. Can you explain this answer?
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Most Upvoted Answer
Financial statements only considera)Assets expressed in monetary terms...
The correct answer is: Assets and liabilities expressed in monetary terms.
Financial statements are formal records of the financial activities and position of a business, person, or other entity. They provide an overview of a business's financial condition in both short and long-term aspects. Financial statements typically include the balance sheet, income statement, and cash flow statement.
Financial statements consider:
1. Assets expressed in monetary terms: These are the resources owned by a business that have a measurable monetary value. Examples include cash, accounts receivable, inventory, buildings, and equipment. These assets are recorded in the financial statements at their monetary value, either at their historical cost or fair market value, depending on the applicable accounting standards.
2. Liabilities expressed in monetary terms: These are the obligations of a business that also have a measurable monetary value. Examples include accounts payable, loans, and bonds payable. Like assets, liabilities are recorded in the financial statements at their monetary value.
Financial statements do not typically include:
Assets expressed in non-monetary terms: These are resources that cannot be easily quantified in monetary terms, such as human capital, intellectual property, or brand value. While these assets can contribute significantly to a company's success, they are not included in the financial statements because they do not have a clear, measurable monetary value.
To summarize, financial statements consider both assets and liabilities expressed in monetary terms, as they provide a clear and quantifiable measure of a business's financial position. Non-monetary assets, while potentially valuable, are not included in financial statements due to their lack of a clear, measurable monetary value.
Financial statements are formal records of the financial activities and position of a business, person, or other entity. They provide an overview of a business's financial condition in both short and long-term aspects. Financial statements typically include the balance sheet, income statement, and cash flow statement.
Financial statements consider:
1. Assets expressed in monetary terms: These are the resources owned by a business that have a measurable monetary value. Examples include cash, accounts receivable, inventory, buildings, and equipment. These assets are recorded in the financial statements at their monetary value, either at their historical cost or fair market value, depending on the applicable accounting standards.
2. Liabilities expressed in monetary terms: These are the obligations of a business that also have a measurable monetary value. Examples include accounts payable, loans, and bonds payable. Like assets, liabilities are recorded in the financial statements at their monetary value.
Financial statements do not typically include:
Assets expressed in non-monetary terms: These are resources that cannot be easily quantified in monetary terms, such as human capital, intellectual property, or brand value. While these assets can contribute significantly to a company's success, they are not included in the financial statements because they do not have a clear, measurable monetary value.
To summarize, financial statements consider both assets and liabilities expressed in monetary terms, as they provide a clear and quantifiable measure of a business's financial position. Non-monetary assets, while potentially valuable, are not included in financial statements due to their lack of a clear, measurable monetary value.
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Financial statements only considera)Assets expressed in monetary terms...
The correct answer is: Assets and liabilities expressed in monetary terms.
Financial statements are formal records of the financial activities and position of a business, person, or other entity. They provide an overview of a business's financial condition in both short and long-term aspects. Financial statements typically include the balance sheet, income statement, and cash flow statement.
Financial statements consider:
1. Assets expressed in monetary terms: These are the resources owned by a business that have a measurable monetary value. Examples include cash, accounts receivable, inventory, buildings, and equipment. These assets are recorded in the financial statements at their monetary value, either at their historical cost or fair market value, depending on the applicable accounting standards.
2. Liabilities expressed in monetary terms: These are the obligations of a business that also have a measurable monetary value. Examples include accounts payable, loans, and bonds payable. Like assets, liabilities are recorded in the financial statements at their monetary value.
Financial statements do not typically include:
Assets expressed in non-monetary terms: These are resources that cannot be easily quantified in monetary terms, such as human capital, intellectual property, or brand value. While these assets can contribute significantly to a company's success, they are not included in the financial statements because they do not have a clear, measurable monetary value.
To summarize, financial statements consider both assets and liabilities expressed in monetary terms, as they provide a clear and quantifiable measure of a business's financial position. Non-monetary assets, while potentially valuable, are not included in financial statements due to their lack of a clear, measurable monetary value.
Financial statements are formal records of the financial activities and position of a business, person, or other entity. They provide an overview of a business's financial condition in both short and long-term aspects. Financial statements typically include the balance sheet, income statement, and cash flow statement.
Financial statements consider:
1. Assets expressed in monetary terms: These are the resources owned by a business that have a measurable monetary value. Examples include cash, accounts receivable, inventory, buildings, and equipment. These assets are recorded in the financial statements at their monetary value, either at their historical cost or fair market value, depending on the applicable accounting standards.
2. Liabilities expressed in monetary terms: These are the obligations of a business that also have a measurable monetary value. Examples include accounts payable, loans, and bonds payable. Like assets, liabilities are recorded in the financial statements at their monetary value.
Financial statements do not typically include:
Assets expressed in non-monetary terms: These are resources that cannot be easily quantified in monetary terms, such as human capital, intellectual property, or brand value. While these assets can contribute significantly to a company's success, they are not included in the financial statements because they do not have a clear, measurable monetary value.
To summarize, financial statements consider both assets and liabilities expressed in monetary terms, as they provide a clear and quantifiable measure of a business's financial position. Non-monetary assets, while potentially valuable, are not included in financial statements due to their lack of a clear, measurable monetary value.
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Financial statements only considera)Assets expressed in monetary termsb)Liabilities expressed in monetary termsc)Assets expressed in non-monetary termsd)Assets and liabilities expressed in monetary termsCorrect answer is option 'D'. Can you explain this answer?
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