Acc/280 Wk 1 Dq1

What be the four basic pecuniary argumentations? According to our trail text Financial Accounting, the four basic financial statements are income statement, a retain earnings statement, a dimension tag end and a statement of cash flows. What do the different financial statements put you about(predicate) a phoner? The income statement is about the revenues and expenses and resulting light up income or net loss of a telephoner for a specific stay of epoch. (Weygandt, J.J., 2008) A retained earnings statement reiterates the changes in retained earnings for a specific rate of flow of time. (Weygandt, J.J., 2008) The balance sheet go out list both of the assets and liabilities that the friendship has and on a particular date, the stockholders equity will be listed as well. The statement of cash flows will summarize what would bring up to the cash approaching in (receipts) and the cash that would be coming out (payments) over a particular period of time. Which financial statement is the closely utilitarian? I would forecast that since all four statements would pertain to the company that they are all as of the essence(p). Why?

The income statement is in-chief(postnominal) because it will point whether the companys revenue exceeded expenses for a specific period resulting in net income or the amount the company whitethorn abide lost because the expenses exceeded the revenue. The retained earnings statement is equally historic because it will indicate the exact reason wherefore the companys retained earnings increased or decrease over the reportage period. The balance sheet is impor! tant because it is the overview of the companys financial condition at the time of the reporting period and the statement of cash flows is important because Reporting the sources, uses, and change in cash is useful because investors,creditors, and others tidy sum to know what is happening to a companys most liquid resource. (Weygandt, J.J., 2008) What types of information is provided to managers in your department and how do...If you want to rush a full essay, order it on our website: OrderCustomPaper.com

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