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Explain What Gains and Losses Are,how They Are Calculated,and How

question 13

Essay

Explain what gains and losses are,how they are calculated,and how they are reported on the financial statements.


Definitions:

Note Payable

A liability in written form that promises to pay a specified amount of money at a future date.

Interest Expense

The cost incurred by an entity for borrowed funds; interest payments made on debts.

Account Balance

The amount of money in an account, calculated by adding all debits and subtracting all credits.

Financial Statement

A written record that conveys the business activities and the financial performance of a company; main statements include balance sheet, income statement, and cash flow statement.

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