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A assets expressed in monetary terms B liabilities expressed in monetary terms C only assets expressed in non-monetary terms D assets and liabilities expressed in non-monetary terms
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Financial statements are written records of a business'sfinancial situation. They include standard reports like the balance sheet,income or profit and loss statements, and cash flow statement. They stand asone of the more essential components of business information, and as theprincipal method of communicating financial information about an entity tooutside parties. In a technical sense, financial statements are a summation ofthe financial position of an entity at a given point in time. The primary focusof financial reporting is information about earnings and its components. Hence financialstatement do not consider assets and liabilities expressed in non-monetaryterms.
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