Acct 290 Week One Financial Summary

Principles of Accounting I Cheryl Lincoln University of Phoenix ACC/290 November 20, 2011 Financial contestations atomic number 18 designed to advert investors and creditors of an face when decision making business transactions. They show the fiscal exploit of an organization. Financial dictations ar needed by all businesses unheeding of size. They provide a picture of the financial position of an organization. These statements ar social functiond by internal and external users. Internal users use these statements to plan for the time to come; external users can use these statements to append credit. The four financial statements are useful when evaluating an organizations financial proceeding and stability. The four statements are: the offset sheet, income statement, retained earnings statement, and statement of interchange flows (,,2010).

The balance sheet provides a picture of the financial condition of the organization at a ad hoc train in time. It lists the assets, liabilities, and shareholder virtue. The assets are anything that the organization owns, the liabilities are anything the community owes, and the stockholder equity is assets that are in the organization. The balance sheet is used by potential creditors to determine the probability that they leave alone be repaid. The balance sheet, the retained earnings statement and the statement of cash flows are interrelated (,,2010). The balance sheet is for a specific point in time versus other statements that are for a bound of time. The income statement shows how success full(a)y an organization has operated during a peri od of time; it reports the revenues...If you! want to get a full essay, guild it on our website: OrderEssay.net

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