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Identify the Three Key Financial Statements That Corporations Are Required

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Essay

Identify the three key financial statements that corporations are required to prepare, and describe the type of information found on each.


Definitions:

Outstanding Checks

Checks that have been written and recorded in the payer’s ledger but have not yet been cashed or cleared by the bank.

General Ledger

A comprehensive accounting record of all transactions affecting a company, consolidated into debit and credit accounts.

Bank Statement

A monthly or quarterly document provided by a bank detailing all transactions in an account, including deposits, withdrawals, fees, and interest earned.

Imprest Petty Cash

A fixed amount of cash used for small, incidental expenses, replenished periodically.

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