Financial Statement Paper

Financial narration piece Barbara Watson ACC/290 February 1, 2012 Courtney Wilson Financial Statement penning In any business or organization that is change there has to fiscal records kept consistently to be as follows; (1) compliant with federal business laws, (2) in accordance with wanton Revenue Service, and last no fraudulent reporting in profit gains. In this paper I will driving force to explain the four basic financial statements, describe their purpose, and the heartfelt to both external and internal users. The four basic financial statements of any keep company or organization argon as follows; (1) the Income Statement, (2) hold internet, (3) Balance Sheet, and (4) Statement of Cash be givens. These statements argon usually prepared at a specific pulse of the year, either on a monthly, quarterly, or annual tail end (Lewis, 2009). . The Income Statement basically furnishs the fees earned minus operate expenses to lay down if the compa ny 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 similar 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 emphatically generated a net profit.

However, if the operating expenses are greater than the earning fees than we batch call for that company has a net loss The Retained Earnings Statement provides information based on preceding(prenominal) income scattering to the possessor and shareh olders in the form of dividends, and much wa! s well-kept 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) gold flow from investments, and (3) cash flow from financial activities. This...If you want to curse a full essay, order it on our website: OrderCustomPaper.com

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