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What are two major forms of debt financing? Describe and differentiate between the two types.
Income Statement
A financial statement that reports a company's financial performance over a specific accounting period, detailing revenue, expenses, and net income or loss.
Balance Sheet
A document detailing a firm's assets, liabilities, and owners' equity at a particular moment, offering an overview of its financial health.
Unearned Subscriptions
A liability account that represents payments received by a company for subscriptions that have not yet been earned because the service has not been provided.
Deferral
An accounting principle that postpones the recognition of an expense or revenue to a future accounting period.
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