Financial Statements

Financial Statements ACC/290 January 16, 2012 Financial Statements business relationship is the practice of summarizing, recording, analyzing, and account fiscal transactions. Accounting plays a vital role in assisting the correct across of economic activity in an organization. The financial statements presentation a great deal about a companys work with the reporting of history activity. In this paper I go out notice the 4 basic financial statements and describe the intention of each. I will also discuss how financial statements atomic number 18 reclaimable to internal users such as employees and managers as substantially as external users such as creditors and investors. The Financial Accounting Standards instrument panel (FASB) develops the United States standards, referred to as generally recognised accounting principles (GAAP) (Kimmel, Weygandt, & Kieso, 2011). These standards argon rules accountants moldiness use when preparing financial statem ents. The four main financial statements atomic number 18 equilibrium sheet, income statement, bear lolly statement, and statement of gold flows (Kimmel, Weygandt, & Kieso, 2011). The balance sheet states the basic accounting equation at a specific time: Assets = Liabilities + Stockholders honor (Kimmel, Weygandt, & Kieso, 2011).

This equation essential always be in balance; the assets equaling the sum of liabilities and old-hatholders equity. Assets are what a company owns that have value. This could imply products or service that can be sold or used by the company. Assets include physical property, plant, equipment, cash, patents, and trademarks. Liabilities are creditor claims, debts, and obligations a company must pay or! settle by transferring assets or services. just about putting green types of liabilities are accounts payable, notes payable, unearned revenues, taxes, salaries, wages, and interest. Stockholders equity is the claims of owners composed of common stock and retained win. When the company sells new shares of stock, common stock results; retained earnings is...If you want to get a serious essay, order it on our website: OrderEssay.net

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