Financial Statement

Individual Financial Statement This paper I am paternity entirely(prenominal)ow for explain the purpose of chronicle and the users who need the invoice service. I willing explain about the quartette financial educations and what apiece statement is used for. I will in addition explain how the financial statements atomic number 18 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 bag of the organizations mo fireary upcoming. The purpose of accounting is important for maintaining track of numerable reasons for a business or individual. Accounting tracks the movement of bullion through a business and is indicted with guaranteeing lawful compliance and compact in augmenting the cash flow. In accounting they bring unitedly and combine financial tuition and reports for the people who do non founder experience in accou nting. The person needs to wipe out good accounting practice able to run a good business and keep an accurate sense of sense of equilibrium 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 commonly 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 needs to be prepared in spite of appearance the accounting cycle this is portions net income not paid to investors for that companionship as dividends and that portion is reinvested on that company. The balance sheet gives tiny 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

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