Week 1 DQ 2 - What do each of the four financial statements tell you about a company How do companies use financial statements Which financial

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What do each of the four financial statements tell you about a company? How do companies use financial statements? Which financial statement do you think is the most useful and why? The  income statement  can tell whether or not a business or organization is profitable  or unprofitable over a specific period of time.  The  retained earnings statement  can provide detailed information on why the retained  earnings increased or decreased over a specific period of time. The  balance sheet  shows the financial condition of a business or organization at a  specific moment. It details the assets, liabilities, and owners/stockholders equity at that  moment. While the other reports give detailed information over a specific period of time,  the balance sheet is only accurate for a specified instant. It can change from moment to  moment. The 
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This note was uploaded on 12/13/2011 for the course ACCOUNTING ACC 280 taught by Professor Kenfredrickson during the Spring '09 term at University of Phoenix.

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