Communicating with Users

Communicating with Users - Communicating with Users Assets,...

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Communicating with Users Assets, liabilities, expenses, and revenues are of interest to users of accounting information. This information is arranged in the format of four different financial statements , which form the backbone of financial accounting: To present a pict your business ow owes (its liabiliti sheet To show how successfully your business performed during a p revenues and expenses in an income statement To indicate how much of previous income was distributed to y your business in the form of dividends, and how much was re for future growth, you present a retained earnings statement To show where your business obtained cash during a period o used, you present a statement of cash flows . International Note The primary types of financial statements required by international accounting standards (IFRS) and U.S. accounting standards (GAAP) are the same. Neither IFRS nor GAAP is very specific regarding format requirements for the primary financial statements. However, in practice, some format differences do exist in presentations commonly employed by IFRS companies compared to GAAP companies. To introduce you to these statements, we have prepared the financial statements for a marketing agency, Sierra Corporation. Income Statement The income statement reports the success or failure of the company's operations for a period of time. To indicate that its income statement reports the results of operations for a
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This document was uploaded on 11/03/2011 for the course ACCOUNTING ac 201 at Montgomery.

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Communicating with Users - Communicating with Users Assets,...

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