Acc225 Week 1 Checkpoint Financial

CheckPoint Financial Statements Consider that you have been asked to explain pecuniary narratives to individual who knows nonhing about accounting. Review the learning on financial rehearsals in Ch. 1 of Fundamental Accounting Principles. Discuss, in two vitamin C to 300 words, each of the four financial statements. Explain the disparate components of the statements as well as what the statements tell about a business. There argon four main financial statements. They are: (1) income statement; (2) Statement of owners equity; (3) proportionality sheet; and (4) statement of funds flows. Income statements show how much specious a order made and spent oer a issue of time. Balance sheets show what a conjunction owns and what it owes at a fixed point in time. Statement of bullion flow shows the exchange of money between a company and the outside world also over a dot of time. The fourth financial statement, called a Statement of owners equity, shows changes in equity from net income (or loss) and from the owners investments and withdrawals over a period of time.

The changes in assets and liabilities that you see on the respite sheet are also reflected in the revenues and expenses that you see on the income statement, which result in the companys gains or losses. specie flows provide more culture about cash assets listed on a balance sheet and are related, but non equivalent, to net income shown on the income statement. No one financial statement tells the complete story. But combined, they provide very powerful information for investors. And information is the investo rs best tool when it comes to investing wise! ly.If you exigency to get a full essay, order it on our website: BestEssayCheap.com

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