The Framework Used to Record and Summarize the Economic Activities

question 135

Essay

The framework used to record and summarize the economic activities of a business enterprise is referred to as the accounting equation. State the basic accounting equation and define its major components. How are financial statements related to the accounting equation?

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Definitions:

Strategic Vision

A statement about where the company is going and what it can become in the future; clarifies the long-term direction of the company and its strategic intent.

Core Values

The strong and enduring beliefs and principles that the company uses as a foundation for its decisions

Organization Reason

A principle or cause that underlies the functioning and strategic objectives of an organization.