Financial Statements

Financial Statements Accounting is an training system that identifies records and communicates the economic events of an organisation to concerned users (Weygant, 2006, p. 4). For accountants to relay the breeding wanted by interested users, they must create newspaper publishers that impart give the proper information of the composition. An accountant can create many reports, but plainly when four major reports that are created for internal and external users. Those reports try for the income report, a maintained earnings recital, a balance sheet, and a statement of cash flows. Each of these statements is interrelated, and an organization cant have one without the other. Income Statement The income statement is used to report the victor or profitability of the companys trading operations over a specific occlusion of time (Weygant, 2006, p. 22). For a retail store, an income statement lists revenues minus cost of goods sold to fascinate crying(a) prof it, then minus expenses to come in interlock income or realize loss. Assets, liabilities and stockholders legality are not a part of this statement because no income or loss is current in these items unless they have already been expensed. Assets depreciation leave totally furnish up as an expense regularly, but the asset itself lead not unless it has been sold.

A liability will that head up once a payment has been do and it will be expensed out to the appropriate category. Because Stockholders equity is never expensed out, it will never show up on the income statement. Stockholders equity is normally a dividend and w ill be considered either an append or decre! ase in maintained earnings (Weygant, 2006, p. 22). The income statement is multipurpose to external users and internal users if they would want to know how moneymaking the organization is at a specific period in time. well-kept Earnings Statement The retained earnings statement reports the changes in retained earnings for a specific period of time (Weygant, 2006, p. 22). The retained earnings statement is...If you want to get a adept essay, order it on our website: BestEssayCheap.com

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