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Describe how the value chain can help a business analyse its cost structures. What is meant by upstream costs and downstream costs? Give examples.
Balance Sheet
A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of the firm’s financial condition.
Assets
Resources owned or controlled by a company that are expected to provide future economic benefits, such as cash, inventory, equipment, and real estate.
Accounting Cycle
The full process of recording and processing all financial transactions of a company, from when the transaction occurs, to its representation on the financial statements, to closing the accounts.
Adjusting Entries
Journal entries made in an accounting system to update account balances before financial statements are prepared, ensuring records adhere to the accrual basis of accounting.
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