Define These Terms: Financial Statement,balance Sheet,income Statement,ratio Analysis

question 146

Essay

Define these terms: financial statement,balance sheet,income statement,ratio analysis.Describe four types of financial ratios and explain the use of each.

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Definitions:

Leasing

Leasing is a financial arrangement whereby a person or entity uses an asset or property owned by another for a specified period, in exchange for periodic payments.

Tax Obligations

The legal requirement for individuals or entities to pay taxes to governmental authorities according to the laws in place.

Economic Life

Refers to the length of time an asset is expected to be usable for its intended purpose or until it is more cost-effective to replace it.