Finanical Statements ex. - Financial Statements 1 Financial...

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Financial Statements 1 Financial Statements
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Financial Statements 2 Part 1: Keeping accurate records is the key to making sound decisions in accounting. Sometimes we forget things that are bought or money made and that is the main purpose for keeping accurate books. A balance sheet, also known as a statement of condition, is used to keep records. Its records show the businesses assets, liabilities and net worth with specific dates in mind. Companies balance accounts generally on a weekly or daily basis, but most importantly companies do a “monthly close” which involves balancing and reconciling accounts. A tool also used is income statements, which are just financial statements depicting a businesses income and expenses over time, typically over a year. Many stock holders depend on these reports so they can evaluate whether the shares they own have equity or not, this is called stockholders equity. A retained earnings statement is a report informing the company of its profits and
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This note was uploaded on 05/07/2010 for the course ACCOUNTING ACC225 taught by Professor Professor during the Spring '10 term at University of Phoenix.

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Finanical Statements ex. - Financial Statements 1 Financial...

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