Financial Statements

Running head: ACCOUNTING FINANCIAL STATEMENTS

Accounting Financial Statements

University of Phoenix

Principles of Accounting

ACC 280

September 7, 2009

Accounting Financial Statements

Introduction

Accounting is about keeping track of the money and how a business monitors their income, expenses, and assets for a specific period of time. “Accounting often is referred to as "the language of business" because of its role in maintaining and processing all important financial information that an entity or company requires for its managing and reporting purposes” (Top Accounting Degrees, 2009). Accounting is a field of interest critical to the performance of all types of organizations.

Purpose of Accounting

The purpose of Accounting is to capture financial information related to an organization’s resources. Accounting is a service that provides information of value to all internal and external users. Accountants learn about accounting and take on a wide variety of activities besides the basic bookkeeping of preparing financial statements and recording business transactions. “Accountants also compute costs and gains from new technologies, participate in strategies for mergers and acquisitions, quality management, develop and use information systems to track financial performance and tax strategy” (Top Accounting Degrees, 2009). Good accountants are very important to a company’s success.

Statements

Financial statements provide information about the financial position and performance of a business that is useful to a wide range of users in making economic...