Accounting

This week’s assignment will focus on financial statements, a critical component in the decision-making process for various stakeholders. To demonstrate your comprehension of this, you will identify the key components of financial statements, explain their significance in reflecting a company’s financial position, and describe how different stakeholders use this information.

Financial statements are composed of various transactions. Please review Urban Path Co.’s transaction below and address the following questions:

1. Categorize each transaction into one or more of the following categories: equity, assets, liabilities, income, and expenses. Use the table in this template to organize your categorizations and ensure that every transaction is properly accounted for with debits and credits. 
2. Provide a brief overview of the company’s total assets, liabilities, and equity. Explain how each figure reflects the company’s financial position. 
3. Which financial statement do you consider most valuable as an investor when making investment decisions? Support your choice with relevant examples. 
4. Explain how the financial statements resulting from Urban Path Co.’s transactions might be used by various stakeholders (i.e., investors, creditors, and management).  

I have attached the file.

[500 words]