Define the Elements of Financial Statements Identified in SFAC No

question 14

Essay

Define the elements of financial statements identified in SFAC No. 3 and SFAC No. 6.

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Definitions:

Account

An accounting device used in bookkeeping to record increases and decreases of business transactions relating to individual assets, liabilities, capital, withdrawals, revenue, expenses, and so on.

Discounting Note Receivable

The process of reducing the value of a note receivable to reflect its current worth by applying an interest rate.

Endorsing Note

A legal act of signing the back of a negotiable instrument, such as a check, to assign its benefits to another party.

Bank Discount Rate

The interest rate at which a country's central bank lends money to domestic banks, often used as a benchmark for other interest rates.