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The financial positions and the operations’ results are recorded and then summarised into reports. The transactions that take place are recorded with the aid of standardised rules and guidelines. This is what makes up a financial statement and hence is of the highest possible value. These statements come from external auditing sources as they are outsourced to third party agencies.

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This statement is also called Owners' Equity Statement. A balance sheet presents assets, liabilities and owner's equity at a specific date.

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For more classes visit www.snaptutorial.com Exercises 2. Basic computations. The following selected balances were extracted from the accounting records of Rossi Enterprises on December 31, 20X3: a. Determine Rossi's total assets as of December 31. b. Determine the company's total liabilities as of December 31. c. Compute 20X3 net income or loss. 5. Accounting equation; analysis of owner's equity. Sportscar Repair revealed the following financial data on January 1 and December 31 of the current year. Assets Liabilities

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