Question

1) What are the main business activities?

2) What are the main financial statements

3) What is the fundamental equation?

Answer 1

1. Main business activities are the principal activities of the business in which it deals. These are the activities for which a business is formed. These are considered as the principal revenue generating activities and are the core activities of the business. For example, for a furniture dealer, all the activities of sdale and purchase of furniture will constitute main business activities.

2. Main financial statements are:

- Income statement

- Statement of financial position or Balance sheet

- Statement of changes in equity

- Statement of cash flows.

3. Fundamental equation is:

Assets = Liabilities + Stockholder's equity