Accounting is essential in every business entity and serves a purpose to all internal and external users. Several business entities use financial statements to make the most efficient, economic decisions and to maintain a balance in the organization. For business entities, financial statements are the snapshots of the business. The financial statements purpose is to summarize and interpret the financial aspect of a business entity for internal users such as managers, marketing professionals, production
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Financial Statements Clementine McIntosh ACC/280 University of Phoenix Professor James Hill March 23, 2011 Financial Statements Introduction “The Onscreen Financial Statement converts data into useful and actionable business information. Managers can identify and assess vulnerable areas for one or all of their stores. It helps them to keep pace with daily business activities and mitigate negative month-end impacts.” (Collins, 2011). “In business, accounting and financial statements are the
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Financial Statements Paper Accounting information consists several areas of interest for users looking to interact with a business. These areas include assets, liabilities, expenses and revenues. The information reflecting these areas of interest is used to populate financial statements. The backbone of financial accounting is made up of four basic financial statements. These four financial statements are a balance sheet, an income statement, a retained earnings statement, and a statement of cash
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Financial Statements Balance sheets, income statements, retained earnings statement, and statement of cash flows are the four basic financial statements. The balance sheet reveals what a business owns and what it owes. Income statements reveal how much cash comes in and how much goes out. Retained earnings are the net income retained in the corporation. Statements of cash flow reveal how company’s exchange money with other companies and the outside world. Balance Sheets The balance sheet
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RUNNING HEAD: FINANCIAL STATEMENTS PAPER Financial Statements Paper ACC 290 Financial Statements Paper In this paper the four basic financial statements will be defined. Each of the four financial statements has its purpose for use. As part of the paper the description of the purpose of the four basic financial statements is acquired. The discussion of the financial statements would be useful to internal and external users is performed as well in this
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Financial Statements Paper Part I ACC 497 Dally Sichmeller August 9, 2014 Robert Davis Financial Statements Paper Part Companies issue annual reports every year, these annual reports contain financial statements that include the income statement, balance sheet and statement of cash flow. In order to understand the annual report, one has to know what information these statements give and why they are important. The information in these statements can also be useful in making business decisions
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A balance sheet is a financial statement that reports the assets, which are resources owned by a business, liabilities, and stockholders’ equity at a specific date. Examples of assets would be computers, delivery trucks, furniture, and buildings. A balance sheet has two categories: Assets, liabilities, and stockholders’ equity. Liabilities are the debts and obligations of a business. Liabilities represent c claims of creditors on the assets of business. Examples of liabilities would be notes
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The statement of cash flow's primary purpose is to provide information regarding a company's cash inflows and outflows during a specified accounting period. This paper will focus more on how cash flow is helpful to external users. The statement of cash flow complements the income statement and the balance sheet. When credit decisions are made, many factors must be assessed. According to FASB (SFAS-95, paragraph 5) the information on actual cash flows is useful to help creditors, investors, and other
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departments in a business are a very important part of how the business functions. They take care of all aspects that have to do with money, but one of the most notable things they do for a business is handle the financial statements. Financial statements are essentially the backbone of what accountants do for a business. It consists of four separate financial statements in a specific order starting with an income statement, retained earnings statement, balance sheet, and a statement of cash flows. Businesses
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The Cash Flow Statement and Decisions Review Previous chapters examined the information provided by the income statement, balance sheet, and statement of changes in owners’ equity. Fits Where This Chapter In addition, a brief introduction to the cash flow statement was provided in Chapters 2 and 3. Where This Chapter Fits This chapter examines the cash flow statement in depth and focuses on how the information provided by this important statement is used for financial decisions. Looking
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