Balance sheet communicates the financial position of

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Unformatted text preview: rmation to users. Balance Sheet: Communicates the financial position of a business on a certain date, usually at the end of a month or the end of a year.. Assets= Liabilities + Owner's Equity • Income Statement: Summarizes the revenues earned and expenses incurred by a business over a period of time (month, quarter, or year) Revenues - Expenses = Net Income • Woo • Statement of Retained Earnings (Owner's Equity): Illustrates change in owner's equity (retained earnings) over a period of time • Statement of Cash Flows: Illustrates the cash inflows (+) and cash outflows (-) of cash into and out of a business over a period of time. o Can have cash inflows/outflows from operating, investing and financing activities Responsibilities in the Communication Process: Management is primarily responsible for information presented in the financial statements (Management certification) Certified Public Accountant is responsible for providing an opinion as the whether the information in the financial stat...
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This note was uploaded on 01/22/2014 for the course ACG 2021 taught by Professor Linkovich during the Spring '08 term at University of South Florida - Tampa.

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