All categories

3 years ago

What would be the consequences if we did not have financial statements?

Business

1 answer:

shusha [124]3 years ago

5 0

Answer:

Explanation:

Common financial statements that companies use include a Balance sheet help them know their financial position at a particular point in time, an Income statement to determine the profitability of the business and Statement of cashflows to determine how cash comes in and goes out with regards to investing, operating and financing activities. If companies did not use these, there will be extreme problem of fraud as there would be no accountability. Not having these statements would lead to high levels of inaccurate disorganized records.

You might be interested in

Assume that price level in the ABC Islands, a U.S. trading partner, increases signalling inflation in the economy. Using aggrega

lubasha [3.4K]

Answer:

The effects of inflation in the U.S. trading partner, will pass through the U.S. economy in the form of exports: since the U.S. imports goods from ABC islands, the higher prices in the ABC islands will make imports from there more expensive, contributing to a small raise in inflation in the overall U.S. economy.

However, exports from ABC Islands are likely to be a small component of U.S. Aggregate demand, so the effect in overall inflation is likely to be small.

Despite this, the fed can step in and raise interest rates by contracting the money supply. This is contractionary monetary policy, and it is used when inflation is rising. It lowers the value of the U.S. dollar in international markets, but it increases output price level.

8 0

3 years ago

Which career is likely to earn highest salary

Kamila [148]

Burger King is the answer

7 0

3 years ago

The office of the future will see mobile offices allowing employees to work from anywhere. true or false

padilas [110]

I think that the answer is True.

8 0

3 years ago

Read 2 more answers

Sterling Auto International (Scenario) Sterling Auto International is a successful car manufacturing company headquartered in De

arsen [322]

Answer:

The answer is: Market size

Explanation:

China and India are the two countries with the largest populations in the world, around 1,400 million people each. Since China´s population is rapidly growing from rural poor farmers to middle class workers, the market for new products is HUGE. During 2017, 23.56 million cars were sold in continental China compared to 17.24 million cars sold in the US.

The potential buyers for new cars in China is just too big to be ignored by any company in the world. They already represent the largest markets for several European brands including German luxury brands. If Sterling Auto International wants to increase its car sales then China is the place to start selling.

8 0

3 years ago

What was centerpiece arrangements retained earnings for December 31, 2024? And retained earnings for January 1 2024? And Net inc

pashok25 [27]

1. Centerpiece Arrangements' retained earnings for December 31, 2024, were <u>$2,400</u>.

2. Centerpiece Arrangements' retained earnings for January 1, 2024, were <u>$5,100</u>.

3. Centerpiece Arrangements' Net Income for January 1, 2024, was <u>$2,100</u>.

<h3>What are Retained Earnings?</h3>

Retained earnings are the undistributed profits of an entity accumulated over a period of time.

The formula for computing the Retained Earnings is Beginning Retained Earnings Plus Net Income or Loss Minus Dividends.

<h3>Data and Calculations:</h3>

Centerpiece Arrangements

<h3>Statement of Retained Earnings</h3>

For December 31, 2024

Retained Earnings, January 1, 2024, $5,100

Net Income 2,100

Dividends 4,800

Retained Earnings, December 31, 2024, 2,400

Learn more about Retained Earnings at brainly.com/question/25998979

#SPJ1

<h3>Question Completion:</h3>

Centerpiece Arrangements - X Data Table

Retained Earnings, January 1, 2024, $5,100

Accounts Payable 17,600

Office Supplies 1,700

Common Stock 9,000

Accounts Receivable 8,000

Cash 7,200

Equipment 12,100

Centerpiece Arrangements

<h3>Income Statement </h3>

Year Ended December 31, 2024

Revenues:

Service Revenue $ 70,000

Expenses:

Salaries Expense $ 46,000

Rent Expense 16,000

Insurance Expense 4,500

Utilities Expense 1,400

Total Expenses 67,900

Net Income $ 2,100

4 0

2 years ago

What would be the consequences if we did not have financial statements?​

What would be the consequences if we did not have financial statements?