General purpose of statement of financial position
Briefly describe the general purpose of statement of financial position.
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The purpose of statement of financial position is to recapitulate the assets, equity and liabilities on last day of accounting period for which the statement of complete income was recorded.
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The following information is taken from the financial statements of an entity: 20x6 20x5 Property, plant and equipment $4,100,000 $3,600,000 Accumulated depreciation (1,400,000) (1,050,000) Depreciation expense 650,000 Gain on disposal of PPE 35,000 The asset disposed of had a cost of $400,000
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