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    What is the purpose of a balance sheet, income statement, and what does each communicate to the organization?

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    https://brainmass.com/business/financial-statements/balance-sheet-income-statement-22390

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    What is the purpose of a balance sheet, income statement, and what does each communicate to the organization?

    The balance sheet is a statement of the financial status of a company. It reports assets and claims to assets on a specific date.

    The Balance Sheet lists the items owned by a company (assets), the obligations owed (liabilities), and the difference between them (assets - liabilities) which is called the owner's equity. The items are named (such as inventory, long term debt etc.) and have a monetary amount associated with each item. This statement is prepared at a specific point in time (e.g. as 31st 2003 December, 30th September 2002).

    The ...

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    The solution discusses the purpose of a balance sheet and an income statement, and what each communicates to the organization.

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