Accounting_paper_2

Accounting_paper_2 - Nancy Crawley April 18, 2011 Kaydon...

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Nancy Crawley April 18, 2011 Kaydon Corporation Kaydon Corporation (KDN) is a business that designs and manufactures custom engineered and performance-critical products primarily in the United States. Within the company, there are various products made. A few products include: anti-friction bearings, split roller bearings, specialized robotics, and industrial applications. Kaydon also has operations in the United Kingdom, Mexico, Germany, North America, Europe, and Asia. The company is based in Ann Arbor, Michigan, and was founded in 1941. Three statements that are very important to have for a company are, the income statement, balance sheet, and the cash flow statement. Each of these different statements are very important to have, because they give the company, buyers, competition, sellers, outside sources, etc. the information needed to make intelligent business decisions. The first statement is the income statement. The income statement matches the expense with the revenues that occur when operation a business. If revenues made within a business exceed expenses, then the difference is called the net income. If the expenses in the company are greater than the revenues is called the net loss. A company’s income is measured for a certain span of time, which is called the accounting period. Accounting periods usually are one year, but income can also be measured weekly, monthly, quarterly, semiannually, or over any other time desired. On the actual income statement, inside and outside sources will see the revenue, expenses, and the net income. Dividend payments that occur are not reported on the income statement. The decrease in assets for dividend payments is not incurred for the purpose of generating revenue. The dividends are actually transfers of wealth to the owners of the business.
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The main purpose of the income statement is to show managers and investors whether the company made or lost money during a particular period being reported. The important thing to remember about an income statement is that it represents a period of time. The income statement contrasts with the balance sheet, because the balance sheet represents just a single moment in time. There are two ways an income statement can be formed. The first method is the single income statement, and the second method is multi-step income statement. The single step income statement takes a simpler approach, totaling revenues and subtracting expenses to find
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This note was uploaded on 01/05/2012 for the course ACCT 253 taught by Professor Mr.hayes during the Spring '10 term at Wingate.

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Accounting_paper_2 - Nancy Crawley April 18, 2011 Kaydon...

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