Acc/290 Financial Statement Wk 1

Financial Statement Paper

ACC/290

University Of Phoenix

July 8, 2013

Financial Statement Paper

With the growing formation of new companies, take overs of small industries financial statements are the most important areas which will clearly show the state of the entity. Financial statements are reviewed and monitored at all times. Many companies have economic power are clearly viewed and expressed thru these reports, statements and analysis. The financial statements are viewed or reported daily, monthly, quarterly or yearly. Company assets and liabilities can be evaluated and compared. Ethical standards are evaluated thru these reports which must clearly show proper methods of business and clear records of financial statements. These financial statements summarized the activities threw out the different time frames and are divided into four type’s; Balance sheet, Income statement, Statement of retained earnings and statement of cash flow. We will know review all these statements and their benefits for internal and external users.

The balance sheet statements report shows the state of a company threw a certain time frame which maybe for a month, quarter or year. The structure of the report is composed of the name of the company or entity, the title of the statement, specific date of the report and the unit of measurement (in dollars). This statement is a snapshot of how the company or entity is preforming and most important their financial position at the specific of measurement. This statement is very important for the internal uses since it allows the management to review their first list of assets which include the cash available, accounts receivable, inventories and other important data. External viewers can see the asset and liabilities for any given time. Here a possible company buyer over or a possible investor can obtain a clear view of the immediate, present, past or future financial outlook.

The financial net earning obtained by a...