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DQ 1 Wk 2 - company is doing or how much more the company...

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1. Balance sheets are a financial statement that reports the assets, liabilities, and owner’s equity at a specific date. 2. Income Statements is a financial statement that presents the revenues and expenses and resulting net income or net loss for the company for a specific period of time. 3. Statement of Cash Flows is a statement that summarizes the information about the cash inflow (receipts), and the cash outflows (payments) for a specific period of time. 4. Retained Earnings Statement is a statement in which summarizes the changes in retained earnings for a specific period of time. Of these four statements used by companies, I would have to say that the income statement is the most important. I say this because the Income statement reports the net income or the net loss of the company for the given period of time. This in return will tell how well the
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Unformatted text preview: company is doing, or how much more the company needs to make in order to be making a profit. The statement of cash flows is also a statement that I believe is an important statement because this would be able to tell if there is enough income in order to continue the regular routine operations of the company. The reason I chose the Income statements over the Statement of cash flows is because I feel that the income statements is a better way to see exactly what is being spent where, this way if costs need to be cut back, there is a general idea of where you can start on cutting back. The statement of cash flows only shows the payments and the receipts of moneys that come into the company versus what is being spent where....
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