Assignment

Anne Marie, the owner of Anne’s Beauty Salon continues to ask you questions about her financial statements.
1.    What is accounts receivable?  Is it something good?
2.    I see these things called current assets and current liabilities.  What are they?  Why show them?
3.    I still don’t understand what the Statement of Retained Earnings is all about and why do I need it.  What is retained earnings?  What is that thing called a dividend?  Is it an expense?
How would you respond to each of these questions?

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