Financial Statements PaperEssay Preview: Financial Statements PaperReport this essayFinancial Statements PaperThe principle for this paper is to define the purpose of accounting and to identify the four basic financial statements, Balance Sheet, Income Statement, Cash Flow Statement, and the Retained Earnings Statement. Integrated into paper will be explanations on how these statements interconnected to each other and how the internal and external users benefit from them.
The purpose of accounting is to provide a financial information system or insight into learning and understanding the numbers produced by a company. Information systems help to identify, record, and communicate the economic events that occur in an organization. These three activities need to occur in order for accounting to work properly.
Accounting ActivitiesAn organization must identify their economic events for example, sales of a product, manufacturing of equipment or producing new inventory. Recording of the events of moneys earned and spent, in chronological order helps to measure the financial stability of the business. This process is normally done by a Bookkeeper whose only job is to record the economic events into various business ledgers. Last, communicating the economic events from the collected data produces accounting reports. In following these processes, financial statements are created, and are available for the users to analyze and interpret the data. Analyzing and interpreting the data is a very important part of communicating the events. It involves giving a clear explanation of the reported data and any limitations for to its users.
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The form Form Form will return a new form each time, where the data you return will be shown in response to the following: The event number is shown as a column with the given event number as a second field whose value has the associated form field's value, in the return value of the $formField button. It is shown in the form: This is followed by: