would want to look over the company’s financial reports. Every quarter publically traded company has to release their Quarterly Earnings Report. They also have to release their Annual Report. In these reports are the financial records of the company. In the each of these reports are the four basic financial statements; Balance Sheet, Income Statement, Retained Earnings Statement and Statement of Cash Flows statement. The balance sheet reports the complete financial picture at a given period of
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statement is a written report that shows the company’s financial status in a specific date range such as yearly, quarterly and monthly. The four reports that are part of the financial statements are the balance sheet, income statement, retained earnings statement, and statement of cash flows. The financial statements for companies are important because it shows how the company is doing. It is also a way for internal and external users can evaluate a company in specific time periods. Each statement
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purchasing equipment, production increase, or investments these decisions are based on the business’s financial statements. The Relationship between Financial Statements The four basic financial statements are the income statement, the retained earnings statement, the balance sheet, and the statement of cash flows. These statements are interconnected, always outline a chosen amount of time, and are most often produced quarterly. Making sure data is entered correctly in the income statement allows
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accounts ❖ Prepare a trial balance ❖ Journalize and post adjusting entries: Prepayments/Accruals ❖ Prepare an adjusted trial balance ❖ Prepare financial statements: Income statement Retained earnings statement Balance sheet ϖ Journalize and post closing entries ϖ Prepare a post-closing trial balance Account balances are transferred from the ledge onto the trial balance for review and adjustments, if necessary
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statements, (2) retained earnings or equity statements, (3) balance sheets, and (4) cash flow statements. Each of these statements provides specific information about the financial details of an organization. Purpose of Financial Statements The income statement shows how well the organization has performed over a specific period of time. It lists the revenues and the expenses incurred, this shows if the business has been successful or unsuccessful. The retained earnings or equity statement is designed
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CHAPTER 1 THE ROLE OF ACCOUNTING IN BUSINESS CLASS DISCUSSION QUESTIONS 1. The objective of most businesses is to max-imize profits. Profit is the difference be-tween the amounts received from customers for goods or services provided and the amounts paid for the inputs used to provide those goods or services. 2. A manufacturing business changes basic inputs into products that are then sold to customers. In contrast, a merchandising business purchases products in a form that can be sold to
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benefit of these statements to these various users. Financial Statements. In an accounting system, whether prepared manually or electronically, there are four basic statements or reports that are used: The balance sheet, income statement, retained earnings statement, and the statement of income. They are the result of a business’s financing, investing, and operating activities. Statements Defined. The balance sheet shows a snapshot of what is owned and owed by a business for a specific point in
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explain the four basic financial statements, describe their purpose, and the usefulness to both external and internal users. The four basic financial statements of any company or organization are as follows; (1) the income Statement, (2) retained earnings, (3) balance sheet, and (4) statement of cash flow. These statements are usually prepared at a specific time of the year, either on a monthly, quarterly, or yearly basis (Lewis, 2009). . The Income Statement basically shows the fees earned minus
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. Different Types of Financial Statements ACC/561 Accounting April 12, 2012 Different Types of Financial Statements To assess a company, we need to understand their financial statements. The statements are prepared to either monthly or quarterly show how a company is doing. The results from the financial statements can help managers and stakeholders to make financial decisions
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statement is the retained earnings statement, and the fourth financial statement is the statement of cash flows. Each financial statement has a different purpose and shows different aspects of the company’s finances. However, these financial statements are integrated and work together to provide shareholders financial information. This paper will defines the four financial statements while explaining the financial statement most suitable for either an investor, creditor, or management. The Four Financial
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