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3. ACCOUNTS AND FINANCIAL STATEMENTS Business activities resulting in transactions are reflected in the broad groupings of financial statement elements: Assets, Liabilities, Owners’ Equity, Revenue, and Expenses.1 In general terms, these elements can be defined as follows:
<span>assets are the economic resources of a company;
liabilities are the creditors’ claims on the resources (assets) of a company;
owners’ equity is the residual claim
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