In the income statement before operating profit

In the balance sheet under current liabilities

In both the income statement and the balance sheet

In the balance sheet under non-current liabilities

Decrease both total liabilities and stockholder’s equity

Decrease both total assets and stockholder’s equity

Have no effects total material assets and total liabilities

Have no effects total assets, stockholder’s equity and total liabilities

Increase both total assets and total liabilities

Assets + shareholders equity = liabilities

Current assets + long-term liabilities = shareholders equity + liabilities

Current assets + current liabilities = shareholders equity + long-term liabilities

Current assets + long-term assets = shareholders equity + long-term liabilities

Assets – liabilities = shareholders equity

Give a detailed breakdown of key items shown in the primary financial statements

Show the revenues, expenses and operating profit for the financial year

Show, at a particular date, the sources of funds provided to a business by shareholders and others and how these funds have been used

Show where the business's cash has come from and where it has been spent