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Financial Statements Paper 1 Running head: FINANCIAL STATEMENTS PAPER Financial Statements Paper Orlando Barba University of Phoenix
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Financial Statements Paper Accounting is a process of identifying, recording and communicating relevant economic events pertaining to an organization ( Weygandt, 2006).Throughout the accounting process many reports and statements are created and presented to communicate to internal and external parties the status of an organization. Of the many accounting statements, four are considered the ‘four basic financial statements: income statements, retained earnings statements, balance sheets, and statements of cash flows. Without these statements, a company may lack in organization skills which could lead to huge errors being made. These huge errors could cost a company millions of dollars. Knowing that, it is important to make sure that these reports are done accurately and in a timely fashion so that mistakes do not become catastrophes. The Income Statement can be considered the most important statement in most business scenarios. This statement provides an idea of the overall success and profitability of a company during a given period of time (Weygandt, 2006). This statement can be considered the most basic, since the other financial statements are based on information which is derived from the income statement. On the income statement are listed the overall revenue and expenses for the company. The revenue is listed first, normally to the right, while the expenses are listed, afterwards, normally to the left. This allows for a more visible breakdown in the difference
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This note was uploaded on 03/29/2010 for the course ACCT 349 349 taught by Professor Fortune during the Spring '09 term at University of Phoenix.

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weekonepaper (1) - Financial Statements Paper Running head:...

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