Acc/280 Wk 1 Dq1

What atomic number 18 the four basic monetary argumentations? According to our teach text Financial Accounting, the four basic monetary statements are income statement, a retained earnings statement, a dimension rag week and a statement of cash flows. What do the different financial statements put you nigh a association? The income statement is about the revenues and expenses and resulting light up income or net loss of a union 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 every(prenominal) of the assets and liabilities that the play along has and on a particular date, the stockholders equity will be listed as well. The statement of cash flows will summarize what would connect to the cash approaching in (receipts) and the cash that would be coming out (payments) over a partic ular 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 master(prenominal) because it will point whether the companys revenue exceeded expenses for a specific period resulting in net income or the amount the company whitethorn perplex lost because the expenses exceeded the revenue. The retained earnings statement is equally authoritative because it will indicate the exact reason wherefore the companys retained earnings increased or rock-bottom over the account period. The ba! lance sheet is important 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 chance 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 nurture a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper