Financial Statements

Financial Statements Paper
Melba Custer
ACC290
September 05th, 2011
GARY FOOTE

Financial Statements Paper
In this paper I will be discussing the four basic financial controls, the place of each of the financial line of reasonings, how the financial educations would be useful to inwrought users; such as managers and employees, and how the financial statements would be useful to away users; such as investors and creditors.
The four basic financial statements argon balance sheets, income statements, kept up(p) clams statement, and the statement of cash flow.
The aboriginal purpose of balance sheets is reporting assets and claims to those assets at a limited point in time.  Balance sheets consist of the assets a partnership has and what the business owes against those assets.  Balance sheets also help with keeping line on the finances of the social club and helps companies with salaried their debt. Claims to assets are 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 specific period of time.  Income statements give the company an accurate picture 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 of 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 decide 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 determine the retained earnings at the...If you indigence to get a full essay, order it on our website: Orderessay



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