Financial Statement Paper

Financial narration piece Barbara Watson ACC/290 February 1, 2012 Courtney Wilson Financial Statement newsprint In any business or organization that is conventional there has to financial records kept consistently to be as follows; (1) compliant with federal business laws, (2) in accordance with internal Revenue Service, and last no fraudulent reporting in profit gains. In this paper I will driveway to explain the four basic financial statements, describe their purpose, and the high-priced to both external and internal users. The four basic financial statements of any keep company or organization atomic number 18 as follows; (1) the Income Statement, (2) kept up(p) internet, (3) Balance Sheet, and (4) Statement of Cash come downs. These statements are usually prepared at a specific metre of the year, either on a monthly, quarterly, or annual initiation (Lewis, 2009). . The Income Statement basically targets the fees earned minus operate expen ses to demo if the company 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 selfsame(prenominal) time period as the expense. If the records show that the earning fees are more than than the operating expenses, then the company or organization has emphatically generated a net profit.

However, if the operating expenses are greater than the earning fees than we stub call for that company has a net loss The Retained Earnings Statement provides information based on forward income s cattering to the possessor and shareholders! in the form of dividends, 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) specie flow from investments, and (3) cash flow from financial activities. This...If you want to back a full essay, order it on our website: OrderCustomPaper.com

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