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Accounting question-Financial Statements

Accounting question-Financial Statements

How do the different financial statements relate to one another, complementing each other?

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Financial statements complement each other in various ways. The statements of financial position includes information that is used to assess the liquidity of an entity and its flexibility. However, it needs to be used together at least a cash flow statements so that its liquidity or financial flexibility is achieved.

A statement of earnings and comprehensive income are known to reflect the profitability of an entity in a certain period….

APA

183 words

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