Assignments ACCT105-3 Review Exam 2023 Questions and Answers (100% Correct).

Assignment 3: Acct105 2 There is so many things that can impact financial statements when it comes to certain accounting transactions. Expenses and income in the financial statements help any type of company identify what their net worth and their net income is. When we are looking the net worth or income, you are usually looking within a certain time frame. When you record revenues, it shows that companies growing business transactions are done before expenses. When you are recording expenses, this will help enable the company to ascertain any types of repeat expenses that will occur monthly, bimonthly, etc and therefore this will help project on these certain expenses and it will do a financial analysis on where the company growth is going. These types of expenses will make sure that the company will be able to see if there are any unnecessary costs. All the transactions that are recorded together will show a company’s balance sheet. This is so that it can be used to show a financial position. Financial position of the organization will help assist the company in valuation. Net worth is identified by what the financial position shows. Transactions in the accounts can also be used to identify the company’s assets that are owned by the company to increase their net worth. The assets are also can be many different things. It can be land, buildings, and the equipment that the business owns. These assets can be liquidated if the need to increase cash flow for the business. You will need to make sure that this process of the liquidation on the needed accounting transaction sheets. This needs to be documented in the correct ways