Financial Statements

Topics: Income statement, Balance sheet, Financial statements Pages: 3 (762 words) Published: May 9, 2013
Financial Statements
Tonjes Bolden
ACC/280
May 31, 2011

Financial Statements
Accounting defines as a systematic report and analysis of an organization’s financial transactions. Accounting provides organizations the insight into understanding its finances and assisting the organization in budgeting, spending, and decision-making. Examples of people who use accounting for business purposes are managers, investors, creditors, and employees. In this paper the subject will explain how accounting is useful to these people. Also in this paper the subject will identify the four basic financial statements of accounting and explain how they relate to one another.

According to Weygandt (2008), “The purpose of accounting is to identify, record, and communicate the economic events of an organization to interested users.” The organization identifies the events within the company and records the events. The recording provides financial activities through the period of the event. The organization communicates the events to the interested parties.

The first of the financial statement of accounting is income statement. The income statement provides the revenue and expense for period (Weygandt, 2008). The statement also informs the company of a net income or a net loss.

Second is the balance sheet statement of accounting. Weygandt (2008) states, “The balance sheet reports assets, liabilities, and stockholder’s equity of a company at a specific date.” On the balance sheet, the total assets have to equal the same as liabilities and the stockholder’s equity....

References: Adams McIntosh, K. (4, May 2011). Why are the four basic financial statements useful to
managers, investors, creditors and employees? []. Message posted to
http://www.ehow.com/info_8356088_four-managers-investors-creditors-employees.html.
Weygandt, J. J. (2008). Financial accounting (6th ed.). Hoboken, NJ: John Wiley & Sons.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on What are Corporate Financial Statements (Report and Accounts) good for and what do they not tell you?
  • Finanical Statement Analysis Essay
  • Essay on Financial Reporting Problem, Part I
  • Financial Ratio Essay
  • Financial Accounting Report Essay
  • Srategic Financial Analysis Unit 1 Essay
  • Why and What of Income Statement, Balace Sheet, Cash Flow Essay
  • Essay on Financial Statements and Accounting Standards

Become a StudyMode Member

Sign Up - It's Free
Читать далее >>> | Next → | Os Domésticos Legendado Online Assistir Os Domésticos Legendado Online HD 720p Em um mundo pós-apocalíptico onde os sobreviventes se dividiram em facções mortais, o ex-casal Nina e Mark parte em busca do paradeiro dos pais dela. O cruel é que não há lugar seguro, e o desafio mais difícil será conseguir sobreviver. Ver filme Os Domésticos Legendado HD 720p Ver Filme The Domestics Legendado (2018) Assistir Filmes Online ...