Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 26 - No. 24)
When preparing a statement of affairs, which of the following are important considerations?
Preparing a list of the assets and liabilities at the start of the period.
Preparing the statement of profit or loss for the same period.
Determining the total capital at the start and end of the period.
Accounting for cash and bank transactions during the period.
Explanation
Statement of affairs requires a valuation of assets, liabilities, and, thus, capital.
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