Question 1 Introduction
The statement of financial position shows the assets, liabilities and capital, or equity, at a particular date for a sole trader, or limited company.
The statement of financial position shows the assets, liabilities and capital, or equity, at a particular date for a sole trader, or limited company.
Financial accounting and management accounting often make use of the same data in the reports they produce.
Drawings taken by the shareholders of a limited company are shown in the capital section on the face of the statement of financial position.
Cost of sales on the income statement is calculated as opening inventory less purchases plus closing inventory.
The statement of changes in equity for a limited company could include an issue of shares and unrealised profits on the revaluation of property.
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