Four Primary Financial Statements

A balance sheet is a statement of the assets and liabilities of a business going into depth of what the balance of income period.

A financial statements are documents prepared communicating with a business financial activities. Financial statements are a key component of accounting. Financial statements are presented in a structured manner with conventions accepted by accounting and regulatory personnel. There are four different financial statements which includes the balance statement, income statement, retained statement, and the statement of cash flow.

There are four major financial statements that investors, creditors, accountants, CEO’s, and the like study when looking at the financial

Financial statements provide financial decision makers with varied information presented in specific formats that is easily attainable tools to evaluate financial health. Three of the necessary financial statements are the statement of financial position or the balance sheet, operating statement also called income statement, and the statement of cash flows (Finkler, Jones, and Kovner, 2013).

A balance sheet is the most basic and essential financial statement for any organization. It contains the basic

The Balance Sheet is another type of financial statement used by a company to see a snapshot of the company's financial position at a particular point in time. It lists the value of the company's assets followed by its liabilities. A balance sheet can be summed up by a simple equation:

The balance sheet is one of the major and critical financial statements that show the financial position of the company. The balance sheets tell the user of the

In this paper I will identify the four basic financial statements, discuss how they are interrelated with each other, and why they are useful to managers, investors, creditors, and employees.

1.In week one reading the reader will find out there is four primary financial statement balance sheet, income statement, statement of stockholder’s equity, and statement of cash flows.

The four primary financial statements found in annual reports include the income statement, balance sheet, statement of retained earnings and statement of cash flows. The data in each statement includes results from the most recent fiscal year-end, as well as historic data that stakeholders use in identifying trends from year to year. The financial statements include data required for stakeholders to calculate a variety of ratios and analysis which are critical in determining corporate levels of efficiency, profitability, liquidity, debt and sustainability. Since financial statements of public corporations are audited by independent firms, the financial data is typically accurate and generally reflects a standardized format following Generally Accepted Accounting Principles

Financial statement users around the globe use financial statements to evaluate the performance of companies (Fundamentals of Financial Accounting, 2006). In order to locate a company’s reported assets, liabilities, expenses and revenues, statement users rely on four types of financial statements. The four financial statements include: Balance Sheet, Income Statement, Statement of Retained Earnings, and Statement of Cash Flows (Fundamentals of Financial Accounting, 2006, p. 6). Each of these reports provides different information to the financial statement user. The Balance Sheet reports at a point in time: a company’s assets (what it owns), liabilities (what it owes) and

Financial statements of the company are significant for the investors who would like to venture into the business operation. It gives them the insight whether the business is making profits or it is doomed to fail;

The “financial statements are formal reports providing information on a company's financial position, cash inflows and outflows, and the results of operations” (Hermanson, p.22). There are four main components that make up a financial statement. The four parts are, balance sheet, income statements, cash flow and, statement of owner’s equity. The balance sheets role is to define the company’s assets liabilities and revenue of the business. The income statement shows the income within the company. Cash flow reviews the position of the company by cash payments and receipts. Lastly, the statement of owner’s equity shows the amount of earnings, stock and other capitals of people in the company. (Hermanson, p.34-35).

Accountants, business owners, investors, creditors and employees use four basic financial statements of an organization to determine the financial well-being and future earnings potential of that organization. Financial statements are a key tool in seeing and understanding the past, present and future condition of an organization. What are these financial statements and what do they mean to the reader? Do the financial statements mean something completely different to an investor, creditor, and employee?

The Purpose of Financial Statements The financial statements of a business are used to provide information about the status of the business, set performance targets and impose restrictions on the managers of the firm as well as provide an easier method for financial planning. The financial statements consist of the Profit and Loss Account, Balance Sheet and the Cash Flow Statement. There are four areas of information, which we can collect from a company's financial statements. They are: Ÿ