The end result of most accounting is the preparation of accurate financial statements that abide by GAAP. Let’s

start with the balance sheet.

Once you have had a chance to take a look at some real-life balance sheets, let’s try to use them in a practical way.

As you can see, the financing decisions (how does the company buy assets) are all summed up in the balance sheet. In short, the balance sheet shows the results of both debt and equity financing (among other things).

Give a short description of considerations with each financing option (debt vs. equity).

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