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The accounting equation explains how assets are acquired.
TRUE
The balance sheet shows the income left over after subtracting expenses from sales
False - - The income statement shows how much income is left over after subtracting expenses from sales, not the balance sheet.
The income statement reveals how cash flows through a company.
trUE
Understanding the rules of accounting can help in making better investment decisions
tRUE
The balance sheet provides information about how a company collects money from customers
False - - The balance sheet provides information about a company's assets, liabilities, and equity, not how it collects money from customers.
Can you define asset?
a useful or valuable quality, skill, or person:
What are the liabilities in a company?
The debts
How can understanding financial statements help in making better investing decisions?
It can help in making better investing decisions by providing information about a company.
In what ways can understanding financial statements benefit someone in business?
It can help by increasing their management insights, helping them make informed decisions, and improving their overall financial acumen.


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