Financial Statements

Financial Statements ACC/290 January 16, 2012 Financial Statements method of story is the practice of summarizing, recording, analyzing, and account financial transactions. report plays a racy role in assisting the grade across of economic activeness in an organization. The financial statements plant a great adopt astir(predicate) a companys surgical procedure with the reporting of accounting activity. In this paper I impart notice the tetrad elementary financial statements and describe the conclusion of each. I will excessively discuss how financial statements atomic number 18 reclaimable to internal users such(prenominal) as employees and managers as wellhead as external users such as creditors and investors. The Financial Accounting Standards instrument panel (FASB) develops the coupled States standards, referred to as generally accept accounting principles (GAAP) (Kimmel, Weygandt, & Kieso, 2011). These standards argon rules accountants moldiness use when preparing financial statements. The four main financial statements argon eternal rest sheet, income statement, retained pelf statement, and statement of gold flows (Kimmel, Weygandt, & Kieso, 2011). The ease sheet states the basic accounting equation at a specific time: Assets = Liabilities + Stockholders raftdour (Kimmel, Weygandt, & Kieso, 2011).

This equation essential everlastingly 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 suppose products or service that can be sold or used by the company. Assets embarrass physical property, plant, equipment, cash, patents, and trademarks. Liabilities are creditor claims, debts, and obligations a company must settle 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 undisturbed of uncouth stock and retained meshwork. 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

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