Financial Statement

Individual Financial Statement This paper I am paternity altogether(prenominal)ow for explain the purpose of chronicle and the users who need the score service. I lead explain about the quartette financial tales and what individually statement is used for. I will withal explain how the financial statements be interrelated with each a nonher(prenominal) and the way they are useful to the users. Gaining and using this data will direct the business and investors to make better choices on the understructure of the organizations mo realizeary upcoming. The purpose of accounting is important for maintaining track of calculable reasons for a business or individual. Accounting tracks the movement of hard currency through a business and is indicted with guaranteeing lawful compliance and accept in augmenting the cash flow. In accounting they bring in concert and combine financial tuition and reports for the people who do non founder experience in accou nting. The person needs to slang good accounting practice able to run a good business and keep an accurate sense of symmetricalness sheet. The four basic financial statements are Income statement, statement of keep earnings, balance sheet, and statement of cash flows. The income statement tells user how some(prenominal) gold a companionship is making and how much they are spend over a period of time usually for a year.

The income statement also reports EPS, it shows how much money each shareowner would receive. After the income statement is prepared second is the statement of retained earnings this need s to be prepared indoors the accounting cyc! le this is portions net income not paid to investors for that corporation as dividends and that portion is reinvested on that company. The balance sheet gives small information about a companys assets that a company may own, liabilities the amount of money owed to others, and shareholders equity that is the net worth(predicate) and the capital, money left if the company were to sell their assets and paid of all their liabilities. The cash flow statement reports the...If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper