Which of the Following Accounting Statements Would Assist an Individual

question 15

Multiple Choice

Which of the following accounting statements would assist an individual in taking inventory of personal assets and liabilities?

• A) income statement
• B) balance sheet
• C) budget
• D) statement of cash flows

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Definitions:

Market Values

The current value of an asset or company based on the prices at which its securities are traded in the market.

Journal Entry

The recording of financial transactions into accounting records, or journals, indicating accounts affected, amounts, and the date.

Special Purpose Machine

A special purpose machine is designed to perform a specific manufacturing or production task and is not versatile for other uses.

Installation Cost

Expenses associated with setting up or installing an asset for use, often capitalized and amortized over the asset's useful life.