Financial Statements

Financial Statements
ACC/280


Financial Statements Paper
Accounting is an important part to each organization. It communicates the financial state of any organization. Accounting has three canonical activities: identify, record, and communicate. There be four basic financial statements which ar holdful to managers, investors, creditors, and employees. These four basic financial statements are relate and consist of: income statement, contain earnings statement, balance sheet, and statement of change flows.
Accounting is an information system using three bedrock activities which are identify, record, and communicate scotch events to interested users. Companies identify economic events relevant to its business. Financial activities are recorded systematically in a chronological order of events to provide history. Recording in addition impart classify and summarize economic events. The bookkeeping melt is included in the recording of economic events. Accounting reports are then communicated to interested internal and external users by doer of financial statements. Internal interested users are individuals inside the troupe who plan, organize and run the business. These users can be comprised of finance directors, trade managers, human resources, or management.



External interested users are comprised of individuals outdoors the corporation. Two most common of external users are investors and creditors. Investors will use this information to decide whether to buy, hold, or sell stock. Creditors use this information to evaluate the risks associated with granting credit or lending currency to the organization.
An income statement sometimes referred to as the statement of operations, earnings statement, or profit and loss statement presents the revenues and expenses and resulting gelt income or net loss of a company for a specific hitch of time (Weygandt, 2008).
Retained earnings statement reports changes in retained earnings for a specific period of time which...If you loss to get a full essay, order it on our website: Orderessay



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