Question

The personal financial statements of a partner include which of the following?

1) I. Statement of financial condition.
2) II. Statement of changes in net worth.
3) III. Statement of cash flows.

Answer 1

The personal financial statements of a partner include the statement of financial condition, the statement of changes in net worth, and the statement of cash flows.

Step-by-step explanation:

The personal financial statements of a partner include:

1. I. Statement of financial condition: This statement provides an overview of the partner's financial position by listing their assets, liabilities, and net worth.
2. II. Statement of changes in net worth: This statement shows how the partner's net worth has changed over a specific period of time, typically by detailing changes in their assets, liabilities, and capital contributions or withdrawals.
3. III. Statement of cash flows: This statement outlines the partner's sources and uses of cash during a specific period, helping to track income, expenses, and cash flow.