Financial Statements Of A Firm

830 Words4 Pages
Introduction Financial statements of a firm has many important pieces to it to make the finally outcome. When a firm does a financial statement they have to include the income statement, balance sheets, and the statement of cash flow. When the statement of finance is complete the results will reveal what the company have been doing from one period to another. Throughout the report information about the financial statements and the different parts that bring it all together will be discussed. The more financial information known about a firm the better it is when time for investors to invest. It’s also a way for owner’s to be aware of the condition the firm is in. Reviewing a Firm’s Financial Statements Many parts play a role in a firm’s financial statement and making sure everything is correct. There are many people that take part in keeping the firm’s financial statements in order and information correct on them. From the managers in the firm to the owners and lenders there is a hand in the finances. Some of these things are the income statement, balance sheet, and statement of cash flows. All three play a valuable role in a firm’s financial statement. Income statement shows the expenses incurred and revenues generated by the firm over an accounting period. Some major types of expenses that are shown on a typical income statement are revenue, cost of goods sold, gross profit, operating income, income before taxes, earnings per share, and net income. The
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