A Snapshot of the Financial Status of an Organization at an Instant

question 12

Short Answer

A snapshot of the financial status of an organization at an instant of time

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Definitions:

Physical Inventory

An actual count of all merchandise or stock on hand at a specific time.

Retained Earnings

Accumulated net income after dividends that is reinvested into the company rather than distributed to shareholders.

Income Statement

An Income Statement is a financial document that shows a company's revenue, expenses, and profits or losses over a specific period.

Excess Inventory

A situation where a company holds a larger amount of inventory than it can sell or use within a reasonable period, often leading to increased costs.