Financial Statements Paper James Palmer July 16, 2012 University of Phoenix ACC/290 Lee Guillory, Faculty Financial Statements Paper One of the first steps in the creation of a financial management system is to create financial statements. Financial statements come in four basic forms: balance sheets, income statements, statement of retained earnings, and statement of cash flows. A balance sheet is used to report the financial position of an accounting entity at a particular point. A balance sheet shows the liabilities, assets, and the capital of the business. A balance sheet is usually prepared at the end of an accounting period.
Learning Team Reflection Week 2 ACC/290 Learning Team Reflection Week 2 There are four basic financial statements that businesses use in conducting business: income statement, retained earnings statement, balance sheet, and statement of cash flows. Income statement pertains to revenues and expenses of a company. Retained earnings statement is a summary of the adjusted retained earnings that occurred for a specific time. “A balance sheet reports the assets, liabilities, and stockholders’ equity of a business at a specific date” (University of Phoenix, 2011, Week One Reading). Cash flows statement is a summary pertaining to cash flow and outflows in detail of specific transactions within time periods.
| Huffman Trucking | Memo To: Graham Grove, Vice President of Industrial Relations From: Paul Johnson Director of Accounting CC: Simone Ojeda Accounting Specialist Date: [ 4/9/2012 ] Re: Results from ratio calculations and horizontal and vertical analysis What do the liquidity, profitability, and solvency ratios reveal about the company’s financial position? Liquidity ratios are the ratios that measure the ability of Huffman Trucking to meet its short term debt obligations. These ratios measure the ability of this company to pay off its short-term liabilities when they fall due. Profitability ratios measures Huffman Trucking’s ability to generate earnings relative to sales, assets and equity. These ratios assess the ability of the company to generate earnings, profits and cash flows relative to some metric, often the amount of money invested.
Week 2 Accounting Information System · What is the role of the accounting equation in the analysis of business transactions? · Cash Basis Accounting Defined · Accrual Basis Accounting Defined Week 3 ACCT 504 Week 3 Case Study 1 (The Complete Accounting Cycle). Merchandising Operations and Inventory Why is inventory important for a business?
Those financial statements are income statement, retained earnings statement, balance sheet, and cash flow statement (Weygandt, 2008). The income statements show operations results of the revenues, expenses, net profit, or net loss for the accounting period. The information obtained from the retained earnings statement listing the revenue followed by the expenses is used to prepare it. The income statement reflects the organization’s success through its profits. The retained earnings statement reconciles the beginning and ending balances of the retained earnings.
Financial Statements ACC/290 August 13, 2012 Paul Dommes Financial Statements A business’ success or failure is based on numbers - the bottom line. Financial statements communicate these numbers to users, both internal and external, in a group of documents called financial statements. The financial statements are the income statement, the retained earnings statement, the balance sheet, and the statement of cash flows. The results of one statement become an input in another interrelating them. The first statement is the income statement.
c. Accounting principles require that companies report assets on the income statement. d. Assets are measured using the cost concept. 6. Which of the following is a correct expression of the accounting equation? a.
ACCT 504 Week 4 Midterm Exam Click here to Purchase (TCO A, B, C) Which of the following statements concerning users of accounting information is incorrect? (TCO C) Issuing shares of stock in exchange for cash is an example of a(n) (TCO C) Which activities involve putting the resources of the business into action to generate a profit? (TCO A) The cost of assets consumed or services used is also known as (TCO C) Edwards Company recorded the following cash transactions for the year (TCO A) On a classified balance sheet, prepaid insurance is classified as (TCO A) An intangible asset (TCO A) These are selected account balances on December 31, 2007. -Land (location of the corporation's office building) $200,000 -Land (held for future use) 300,000
Balance sheet and income statement within a company are connected by net income. The connection displays or shows the activity of the company’s increase or decrease in equity during a period. Therefore, increases or a gain within an organization is conveyed as the equity portion on a balance sheet. However, a balance sheet displays the company’s liabilities, assets, and investors’ equity. The balance sheet connects to income statements, in turn also connected to cash flow statement.
Financial Statement Paper The financial statements are prepared to show the financial performance of business organizations in respect of their operations, asset bases and profitability capacities, among other attributes (Alvarez & Fridson, 2011). The four major financial statements prepared by different entities are: The balance sheet It is prepared to highlight the financial position of a particular firm at a specific point in time mostly at the end of its financial/trading period (Taparia, 2004). The income statement This statement shows the profits or loss realized by a business entity in the course of purporting its operations at the end of its financial year (Taparia, 2004). Cash flow statement A cash flow statement reflects