Financial Statements Paper ACC/280 YOUR NAME University of Phoenix INSTRUCTOR NAME DATE Financial Statements Paper Accounting provides an exceptional contribution to the success of any small or large company. More specifically, accounting assists company owners in their management decisions by providing valuable financial information. Financial accounting is regulated by rules and concepts recognized as “generally accepted accounting principles” (GAAP). The GAAP requires four financial statements which include: the balance sheet, income statement, statement of cash flow, and statement of owner's equity. In this paper, the purpose of accounting and the four financial statements and how they correlate with each other will be discussed.
Recording also will classify and summarize economic events. The bookkeeping function is included in the recording of economic events. Accounting reports are then communicated to interested internal and external users by means of financial statements. Internal interested users are individuals inside the company who plan, organize and run the business. These users can be comprised of finance directors, marketing managers, human resources, or management.
Internal users that use the financial statements would be accounting personnel, departments heads, corporate auditors, business unit leaders, and top management. These financial statements provide specific and varying data to all the internal users. For the accounting personnel, the objective is to prepare and present any accurate and complete data according to the norms. Department heads and leaders bring different perspectives to financial issues by undergoing accounting reports. Internal auditors, these accounting reports light on the tools a company uses to comply with all the rules.
Financial ratios should be analyzed by a professional accountant. In order to keep a record of the company’s financial health, ratio analysis is used as a tool. Ratio analysis determines and interprets how efficiently a company is working in terms of its finances. Ratio analysis presents a simple and comprehensible understanding of the accounting variables. It is an effective tool for understanding a business’s success in terms of financial undertaking and
Accounting Angel Martinez Acc 11/28/2011 Accounting Accounting requires collecting information and displaying it on statements so that business decisions can be made for the future of a company. The purpose of accounting is to document what the company is spending and what revenue is being collected. Accounting provides a business with correct and documented information on what is profitable and what is negative. Without accounting, businesses can not prosper or make decisions on growth or downsizing. Accounting requires that all transactions be recorded to ensure accuracy when giving financial details to board members, stock holders, and the IRS for tax purposes The income statement posts revenues and expenses.
The users are experts in accounting who identify, record, and communicate economic events of their business to its appropriate users. These users are divided in to two groups, internal users and external users. Managers who plan, organize, and run their business are an example of internal users of accounting information. Examples of these managers include marketing managers, finance directors, company officers, and production supervisors. Investors and creditors are examples of external users of accounting information.
WEEK 2 DAY 7 ASSIGNMENT MANDRESS LACY XACC/280 JULY 22, 2012 JARRAME BOWERS WEEK 2 DAY 7 ASSIGNMENT In looking into the general goals of financial reporting you come to understand that they are to keep accurate financial records of a company, maintain and adhering to all of the principles of accounting. In performing the assignment, the steps taken were first to make entries for the fictitious company that were accurate and fully explained in numbers the financial transactions. Once I completed this step, I then rechecked the information that I concluded and then entered them into the general ledger. Some people would think that this step was not important but it is and it is very helpful. That last step taken was the trial balance
This determines whether requirements for specific agreements are maintained to be in compliance with specific needs. This can minimize a costly error if not items are not followed to agreed upon measures. An example can me requirements established when a note was developed with a national bank. Lastly, the most widely known type of audit is of the financial statements, these are reviewed and compared to the Generally Accepted Account Procedures (GAAP). This allows outside investors and shareholders to maintain confidence in your company.
Kevin Leonel Sonilal XACC/290: Principles of Accounting I Professor Steven German December 6th, 2013 Financial Statements The four basic financial statements are the balance sheet, the income statement, the retained earnings statement, and the statement of cash flows. The incomes statement demonstrates how well the business has performed for a certain period of time. The items reported in the income statement are its revenues and expenses. From an internal user’s standpoint, the financial statement is a management tool. It can be used to evaluate the business’ strengths and weakness, and helps in deciding what route the business should take to make improvements or further its success.
Financial Management Definitions and Concepts Patrice Colbert FIN/370 May 14, 2012 Finance: the study of money: The study of how businesses manage funds in order to operate to make profits, and how individuals manage their financial resources economically. The study of finances and learning the 4 principles of finance plays an important role as it assists to understanding how and why businesses and individual make financial decisions. Efficient market: Market where all pertinent information is available to all participants at the same time, and where prices respond immediately to available