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Unformatted text preview: A retained earnings statement is a report informing the company of its profits and losses in a format that is broken down so that the causes of the individual profits and losses can be seen. Lastly the statement of cash flows is used to show how and what the companys money is spent on and liabilities the company has. From the report the company can also determine what assets they have and how much they are worth. Companies depend on these forms to survive. From the statements a company can predict how well business will be in the future and with inaccurate information good financial decisions can not be made. Many of the statements mentioned can be considered comparative statements because the data of one statement should compliment the data of another....
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This note was uploaded on 01/24/2012 for the course ACC 220 ACC 220 taught by Professor Black during the Spring '11 term at University of Phoenix.
- Spring '11