Reporting the transactions of a Business

Question 1

Auditors

Answer 1

They give an opinion on whether financial statements present a true and fair view of the profit or loss of the period and the state of affairs at the end of the period

Question 2

What are 2 Subdivided equations that lead to profit

Answer 2

Assets minus liabilities minus capital contributed/ withdrawn equals profit

Revenue minus expenses equals profit

Question 3

What happens when assets increase

Answer 3

Assets (increase) minus liabilities equals ownership interest (increase)