Financial Statement Paper

Financial narration piece Barbara Watson ACC/290 February 1, 2012 Courtney Wilson Financial Statement stem In any business or organization that is change there has to pecuniary records kept consistently to be as follows; (1) compliant with federal business laws, (2) in accordance with lax Revenue Service, and last no fraudulent reporting in profit gains. In this paper I will iron to explain the four basic financial statements, describe their purpose, and the practised to both external and internal users. The four basic financial statements of any keep company or organization ar as follows; (1) the Income Statement, (2) well-kept internet, (3) Balance Sheet, and (4) Statement of Cash fertilises. These statements ar usually prepared at a specific measuring of the year, either on a monthly, quarterly, or annual grounding (Lewis, 2009). . The Income Statement basically designates the fees earned minus operate expenses to see if the company o org anization 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 aforesaid(prenominal) time period as the expense. If the records show that the earning fees are more(prenominal) than the operating expenses, then the company or organization has unimpeachably generated a net profit.

However, if the operating expenses are greater than the earning fees than we crowd out call for that company has a net loss The Retained Earnings Statement provides information based on earlier income scattering to the p ossessor and shareholders in the form of div! idends, and much was hold 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 flow from investments, and (3) cash flow from financial activities. This...If you want to support a full essay, order it on our website: OrderCustomPaper.com

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