Financial Statements

Financial Statements Paper Melba Custer ACC290 September 05th, 2011 GARY FOOTE Financial Statements Paper In this paper I will be discussing the 4 basic mo straighten outary controls, the place of each of the monetary line of reasonings, how the financial educations would be useful to inwrought users; such as managers and employees, and how the financial didacticss would be useful to away users; such as investors and creditors. The four basic financial statements argon balance sheets, income statements, kept up(p) start statement, and the statement of cash flow. The aboriginal purpose of balance sheets is inform assets and claims to those assets at a limited point in time.  relaxation sheets consist of the assets a partnership has and what the business owes against those assets.  Balance sheets besides help with keeping line on the finances of the hearty club and helps companies with salaried their debt. Claims to assets argon subdivided into dickens categories: claims of creditors and claims of owners. Claims of creditors are called liabilities. Claims of owners are called stockholdersequity. Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2011), (p.

13) The primary purpose of a income statement is to present the revenues and expenses and resulting net income or net loss of a caller-up for a particular period of time.  Income statements give the company an accurate watch of what the revenue and expenses of the company look like. The income statement lists the companys revenues followed by its expenses. Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2011), (p.12) The primary purpose o! f the retained earnings statement is to summarize the amounts and causes of changes in retained earnings for a specific period of time.  Retained earnings statement helps the company solve what money can go towards paying debt and what money should be invested in the future success of the company. The company adds net income and deducts dividends to set apart the retained earnings at the...If you indigence to get a full essay, order it on our website: OrderCustomPaper.com

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