CheckPoint Financial Statements

CheckPoint - A statement of cash flows shows how changes in the balance sheet accounts and income can affect cash and its equivalent and breaks

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A balance sheet is a sheet that summarizes a company’s assets, liabilities and equity at a specified point in time. The assets are anything that a company owns, the liabilities is anything that a company owes, and the stockholder’s equity is any financial amounts invested by the shareholders. The balance sheet must follow the formula of Assets = Liabilities + Shareholders’ Equity. An income statement is also known as a company’s profit and loss statement is a company’s financial statement that shows how the revenue is turned into net income. This statement shows what the company is paying out versus what is brought in and then what is left over. A retained earnings statement, which is also known as a statement of retained earnings explains the changes in a company’s retained earnings over a reporting period. This statement shows profit and loss from operating the business, dividends paid, and any other charges or credits to the retained earnings.
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Unformatted text preview: A statement of cash flows shows how changes in the balance sheet accounts and income can affect cash and its equivalent, and breaks down the analysis to the operating, investing and financing the company’s activities. The primary reason for the statement of cash flow is for the flow of cash that comes in and out of a company. These statements are used to make future business decisions to ensure the viability of the company. With these statements accurate and complete, one can know of the day-to-day financial operations of the company. At the end of each period these statements need to be reviewed to see what changes need and can be made to ensure the success of the company. If there need to be cuts made, then with these statements you can see a company’s biggest expense and cut from it if it is not extremely necessary to the success of the company....
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This note was uploaded on 06/13/2010 for the course ACCOUNTING 220 taught by Professor Connie during the Spring '10 term at Phoenix School of Law.

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