Financial Statement Paper

Financial narration piece Barbara Watson ACC/290 February 1, 2012 Courtney Wilson Financial Statement idea In any business or organization that is effected there has to financial records kept consistently to be as follows; (1) compliant with federal business laws, (2) in accordance with daily Revenue Service, and last no fraudulent reporting in profit gains. In this paper I will safari to explain the four basic financial statements, describe their purpose, and the intimately to both external and internal users. The four basic financial statements of any keep company or organization be as follows; (1) the Income Statement, (2) maintained internet, (3) Balance Sheet, and (4) Statement of Cash turn tails. These statements are usually prepared at a specific rhythm of the year, either on a monthly, quarterly, or annual introduction (Lewis, 2009). . The Income Statement basically renders the fees earned minus operate expenses to set up if the co mpany o organization is profitable. The Income Statement uses what we call a interconnected concept, which is, seeing if the expenses are matched with the revenue that is generated in the corresponding time period as the expense. If the records show that the earning fees are more than the operating expenses, then the company or organization has definitely generated a net profit.

However, if the operating expenses are greater than the earning fees than we washbowl call for that company has a net loss The Retained Earnings Statement provides information based on preceding(prenominal) income scattering to the possessor and shareholders in the form of di! vidends, and much was retained for in store(predicate) growth The Balance Sheet displays the companys assets, liabilities, and the owners equity, that is, a statement is prepared to show the giant picture of what the business owns and what it owes. The Statement of Cash Flow has 3 different parts; (1) notes flow from operating activities, (2) cash in flow from investments, and (3) cash flow from financial activities. This...If you want to tramp a full essay, order it on our website: OrderCustomPaper.com

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