Acc 290 Week 1 Financial Statements

Financial Statements Paper
Name
University of Phoenix
Management Theory and Practice
ACC 290
XX
January 8, 2012

Financial Statements Paper
The information path atomic number 50 be an overwhelming place to gather the undeniable information for companies. Using quaternity basic pecuniary arguments managers, employees, creditors, and investors can gather pertinent information to perform their various affair duties. Accountants compile a companys pecuniary statements found on their assets, liabilities, equity, revenues, and expenses to build the framework of the organizations mo dineroary status (Beginners Guide to Financial Statements, 2007). The four basic financial statements assist in effective decision-making and the critical thinking assist within a business. Understanding the importance of the four financial statements for severally job duty is crucial for the company to be a success.
The four financial statements that are useful to managers, employees, creditors, and investors are the income statement, retained earning statement, balance sheet statement, and statement of bills flow. These statements get over a period of time on the statement shut out the balance sheet, which covers a point in time.



Understanding what each statement contains also helps the managers, employees, creditors, and investors use the statements for their own purpose.
The income statement displays the net income or loss of an organization based on the revenues and expenses for a detailed period of time. A retained earnings statement serves the same purpose as the name implies; it shows the change in the retained earnings for a period of time. As previously mentioned, the balance sheet statement is the only statement of the four that refers to a specific point in time put down the assets, liabilities, and stockholders equity of the organization.
The statement of cash flow summarizes information concerning the cash inflows (receipts) and outflows (payments) for a period of time (Kimmel,...If you want to get a full essay, order it on our website: Ordercustompaper.com



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