Examples Of Financial Statement Paper Acc/280

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Financial Statement Paper P Agnes Pierre Louis ACC/280 September 26, 2011 Minh Truong Financial Statement Paper In today’s business world it is required to keep an accurate account for assets and liabilities of each company. Good and ethical accounting practices can build the base for a strong and profitable company if the information is used properly. The definition of accounting is obvious but one most know the purpose of accounting which will be covered in the following paragraphs. There are four financial statements that are prepared by companies in today’s society as a form of reporting accounting companies. Those statements are income statement, retained earnings statement, balance sheet, and statement of cash flows. All of which are reviewed as well to provide a complete understanding of accounting in today’s society. Accounting consists of identifying, recording, and communicating the economic events of an organization to interested users (Jerry J. Weygandt, 2008, p. 4). The purpose of accounting is to keep track of all financial events in the company for the internal users or management to make sound decisions regarding the business and also for external users such as investors…show more content…
This information gather is viewed through use of the four financial statements that are made available by accounting departments. The income statement, retained earnings statement, balance sheet and the statement of cash flows are the four financial statements available for users. Each statement is supported by each other and each statement is independent of each other as well. The financial statements have their own purpose but when each statement is available it tells the financial story of a company and shows that accounting is very important and necessary in today’s
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