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 recitals in Ch. 1 of Fundamental Accounting Principles. Discuss, in two speed of light to 300 words, each of the four financial statements. Explain the divergent components of the statements as well as what the statements tell about a business. There argon four main financial statements. They ar: (1) income statement; (2) Statement of owners equity; (3) sleep sheet; and (4) statement of funds flows. Income statements show how much capital a order made and spent oer a issue of time. Balance sheets show what a social club owns and what it owes at a fixed point in time. Statement of cash flow shows the exchange of money between a company and the outside world also all over a extremity of time. The fourth financial statement, called a Statement of owners equity, shows changes in equ ity 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 quietus sheet are also reflected in the revenues and expenses that you see on the income statement, which result in the companys gains or losses. funds flows provide more breeding about cash assets listed on a balance sheet and are related, but not 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 investors b est tool when it comes to investing wisely.I! f you dowry to get a full essay, order it on our website: BestEssayCheap.com

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