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Question
Do you agree or disagree with the following statement:
Financial statement includes only balance sheet.
True or False
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Solution
I disagree with the given statement.
Explanation:
A financial statement includes not only the balance sheet but also the trading account, profit and loss account, and cash flow statement. The balance sheet shows the financial position, while the profit and loss account reflects the profitability of the business. Hence, financial statements provide a complete view of a firm's financial performance and position.
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