The three steps in the accounting process are
1. Identification,
2. Recording, and
3. Communication.
Hence, analyzing and interpreting financial reports is not involved in the accounting process.
Value is the monetary worth of something, in this case, it is an item.
In option A, since it is talking about capital which is measured in monetary terms.
The value of an item is determined by its quality and its age. Often antiques with good quality are sold in the market with a high value and are sometimes auctioned.
The financial statements should be prepared in the following order:
Income statement - Statement of retained earnings - Balance sheet
1. Income statement reports revenues and expenses and calculates net income or net loss for the time period.
2. Statement of retained earnings show how retained earnings changed during the period due to net income or net loss and dividends.
3. Balance sheet reports assets, liabilities, and stockholders? equity as of the last day of the period.
Direct tax is a tax directly paid to the government by the individuals or organizations on whom it is imposed. Sales Tax is paid for the sales of certain goods and services.
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