This website uses cookies to ensure you have the best experience. Learn more

Financial Statement Paper

780 words - 4 pages

Financial Statement Paper
January 29, 2013
Dr. Norris Dorsey

Financial Statement Paper

This week’s individual assignment is to identify the four basic financial statement reports used in basic accounting principles and concepts. It also is to describe the purpose of these four reports and how they would be of use to both managers and employees as an internal component. It is also to describe the external use to investors and creditors.
The four monetary financial statements are the balance sheet, income statement, capital statement as well as the statement of cash flows. A balance sheet shows what a business has. A balance sheet is a statement of business or ...view middle of the document...

The monetary report would be helpful to make decisions concerning money in a near future time according to forecast. Internal users may also use monetary reports to set performance objectives. The internal user will provide information from income statement reports to observe exactly where a business requires enhancing income from other divisions.
The expenses obtained from the income statement reports may be used to indicate internal users exactly where cutback requirements being. Internal users depend on monetary reports to help guide the business in everyday activities.
External users just like investors and creditors use monetary reports to evaluate a business’s performance. The information taken from the monetary reports are used to make decisions to purchase, hold, sell, or lend. Investors use the income statement reports to evaluate a firm's revenue to forecast future revenue. Investors use the information of possible revenue to ensure that they know when to purchase and sell stock from businesses. Creditors use income statement reports to evaluate the future of businesses. Creditors or lenders require making certain that a business can pay back money when borrowed.
The capital statement report is also helpful to investors and creditors alike. By investors checking capital statement reports, investor will be aware of a company’s day- to-day routine. The checking enables investors to make a choice whether or not to invest. The...

Other Essays Like Financial Statement Paper

Financial Statement Paper Part I Home Depot

916 words - 4 pages Financial Statement Paper Part I Armanda Gamboa ACC/497 May 25, 2015 Silvana Moffitt Financial Statement Paper Part I Upon making business decisions there are three types of financial statements that should be looked at and reviewed prior to making any decision. The three statements are the consolidated statement of earnings (income statement), balance sheet, and the statement of cash flows. The income statement will prove the company’s

Financial Statement Essay

861 words - 4 pages performed as well in this paper. The four basic financial statements are the balance sheet, income statement, retained earnings statement, and statement of cash flow (Kimmel, Weygandt, Kieso, 2011). The balance sheet is used to present a picture of what a company owns (Kimmel, Weygandt, Kieso, 2011). The balance sheet reports the amount of assets and claims to assets for a period of time (Kimmel, Weygandt, Kieso, 2011). Assets are items the

Financial Statement

703 words - 3 pages and ownership. An income statement displays the amount of money that was accumulated and disbursed over a period of time, whereas the retained earnings statement displays the exchange of money between a company and other owners. Finally, the cash flows statement determines where the money was acquired in the business and how the money was used. This paper will describe each financial statement and the significance to an investor, creditor, or

Financial Statement Differentiation

898 words - 4 pages users. The purpose of this paper is to explain information contained in each of the four financial statements and discuss reasons each statement is of interest to investors, creditors, and management. Literature Review Literature review identified four primary financial statements the accounting process creates. They are the income, retained earnings, balance sheet, and cash flow statement (Kimmel, Weygandt, & Kieso, 2009). According to

Exxonmobil 2011 Financial Statement Analysis

2760 words - 12 pages ExxonMobil 2011 Financial Statement Analysis and Assessment Shepherd University Abstract ExxonMobil Corporation is one of the World’s largest companies by both gross revenue and net income. Total revenue finished at $486.4 billion for 2011 and net income was $41 billion, increases of $103.2 billion and $10.6 billion respectively. ExxonMobil continues to see solid returns in both their Upstream and Downstream business areas; while the

Financial Statement

1291 words - 6 pages , 2009). Additional guidance is given by a specific accounting pronouncement, Accounting Research Bulletin No. 43. The combination of these two items leads to the lower of cost or market. Based on the conservatism principle and ARB No.43, retail store A would report the basketballs at $5 and recognize the loss on the 2009 income statement. The above example gives guidance when preparing inventory valuations to go into financial statements

Financial Statement - 1348 words

1348 words - 6 pages ) = 40,000 Part B Snake Ltd Statement of Financial Position as at 30 June 2017 |ASSETS | $ | |Current asset | | |Cash and cash equivalent

Financial Statement Analysis

2810 words - 12 pages ANALYSIS OF FIANANCIAL STATEMENT MUSTEHKAM CEMENT LIMITED PRESENTED TO: TAHSEEN MOHSIN PRESENTED BY: MUHAMMAD USMAN GHANI 105221003 (03454657966) PREFACE This is the project of financial statement analysis in which

Comparative Financial Statement

1638 words - 7 pages |Comparative Financial Statement ( Balance Sheet) | |Apex Tannery Limited | |As of 31st December, 1994 and 1995

Financial Statement Analysis

4563 words - 19 pages common size analysis of balance sheets and income statement and the overall trend analysis of the company’s financial ratios. Throughout this work report part, we have done some important interpretation regarding the ratios and find some relevant patterns that are described in the part elaborately to give some sort of knowledge about the performance of this insurance company. 1.3 Acronyms Acronyms used throughout the report are as follows

Financial Statement Diferentiation

658 words - 3 pages Financial Statement Differentiation ACC/561 Financial Statement Differentiation There are four different kinds of financial statements. These include the income statement, the statement of cash flow, the balance sheet, and the retained earnings statement. Each statement has a different focus and are used by investors, managers, and creditors to help make decisions about a business. Knowing which statements need to be used and when will

Related Papers

Financial Statement Paper

908 words - 4 pages Financial Statement Paper Barbara Watson ACC/290 February 1, 2012 Courtney Wilson Financial Statement Paper In any business or organization that is established there has to financial records kept consistently to be as follows; (1) compliant with federal business laws, (2) in accordance with Internal Revenue Service, and last no fraudulent reporting in profit gains. In this paper I will attempt to explain the four basic financial

Financial Statement Differentiation Paper

876 words - 4 pages Financial Statement Differentiation Paper Name ACC/561 Date Instructor Financial Statement Differentiation Paper Financial statements arrange financial information into statements that prove to be the financial accounting backbone. The income statement, statement of cash flows, retained earnings statement, and balance sheet arrange the expenses, liabilities, revenues, and assets of a company into formats that provide a clear view of

Financial Statement Differentiation Paper

724 words - 3 pages Financial Statement Differentiation Paper Set Jardine Acc 561 Financial Statement Differentiation Paper Financial statements are prepared by every public company according to the generally accepted accounting principles adapted by the United States to ensure accounting accuracy within the investment community. These accounting standards are used to prepare the balance statement, the income statement, the shareholders’ equity statement

Financial Statement Paper

800 words - 4 pages Financial Statements Paper Brittany Williams University of Phoenix Principles of Accounting I ACC/290 Kelvin Chang November 26, 2013 Financial Statements Paper In the accounting world, there are four basic financial statements that are normally prepared by profit-making organizations. These are balance sheet, income statement, statement of retained earnings, and statement of cash flows. Each of these statements serves a very