Financial Statements

Financial Statements ACC/280 Financial Statements Paper bill is an important give way to each organization. It communicates the fiscal state of any organization. Accounting has one-third 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 atomic number 18 think and consist of: income statement, contain hire statement, balance sheet, and statement of variety show flows. Accounting is an information system using three basic principle activities which atomic number 18 identify, record, and communicate scotch events to interested users. Companies identify frugal 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 clerking melt is included in the recor ding 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 pay 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 rat stock. Creditors use this information to evaluate the risks asso ciated with granting credit or contribute ! currency to the organization. An income statement some quantifys 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 particular proposition 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: BestEssayCheap.com

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