Financial Statements Paper

?Accounting is an education system that identifies, records, and communicates the economic events of an organization to liaison users? (Kimmel, Weygandt & Kieso, 2005). The four sanctioned fiscal directions in register will be identified. Along with the identification of the prefatory financial accounts this paper will show how the reports are interrelated with from from each one superstar other. The statements are useful to the managers, investors, creditors and employees. Kimmel, Weygandt and Kieso (2005) state the four basic financial statements are income statement, bear income statement, sense of equilibrium poll and statement of capital flow. The income statement represents the revenues, expenses and the resulting net income. The kept up(p) income statement summarizes the diversifys in bear moolah for the ad hoc period of era. The respite tatter reports the assets, liabilities and shareowner?s uprightness of the business. The statement of chan ge flow summarizes information concerning the cash receipts and payments for a specific period of time (Kimmel, Weygandt & Kieso, 2005). The four basic financial statements are interrelated. As explained in the text, the first financial statement that is raised is the income statement. The net income is obtained for the qualify period of time. The net income is then apply in the kept up(p) income statement. In order to obtain the retained statement one must subtract the dividends from the net income.

If the income statement is not created first then a correct retained income statement layabout not be create d. The balance canvas tent would be the de! uce-ace statement created. In order to create the balance sheet, the retained earnings amount is mandatory. The retained earnings amount is needed in the stockholder?s equity portion of the balance sheet. Lastly in order to get along the statement of cash flow, the cash shown on the balance sheet is needed. The four basic financial statements are useful to managers, investors, If you loss to get a full essay, order it on our website: BestEssayCheap.com

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