Financial Statements PaperEssay Preview: Financial Statements PaperReport this essayIn the accounting world there are four basic financial statements for any business. They each serve their own purpose and are useful to internal users as well as external users. I plan to discuss what each statement is, describe its purpose, and explain how they are useful to internal and external users.
The first financial statement is “to present a picture at a point in time of what your business owns (its assets) and what it owes (its liabilities), you prepare a balance sheet” (Kimmel, Weygandt, & Kieso 12). The purpose of the balance sheet is for a business to put into writing their assets and liabilities with the main goal of ensuring that those assets balance with the claims to assets. Those claims to assets are also divided into two categories, claims of creditors and claims of owners. The claims of creditors part is also referred to as the businesses liabilities. The balance sheet is important because it enables stockholders, creditors, and employees to see the clear picture regarding the businesses assets and liabilities.
The accounting of the assets and liabilities is a process. Each business can have its own accounts ⇂ (Johannes, Guechtsen, % Kohl, Schwab 11). A business must account for its financials in accordance with its various accounting activities. Each business is expected to have an understanding of who is paying what and how the company intends on paying them. The process of accounting also includes making necessary adjustments. The accounting also involves a thorough examination of many of the issues that define how a business treats its assets &/or liabilities. For instance, a business that is making significant investments should first have an objective for assessing its assets in any given situation. On the basis of these activities, the balance sheet must be prepared in light of all the issues. In this manner, there are some additional rules that, when necessary, enable the business to accurately measure its assets in a more complete way.
The Accounting of the Assets and Disposable Liabilities Act of 1998
Regulation 26.03/2001 (Cth) includes:
– In general, it requires a business to register and/or set aside at the end of each financial year an information on each asset that is listed in the Annual Report. The financial year is the end of the financial year and all other financial transactions related to that financial year. The amount in the Annual Report for a business under Regulation 26.03/2001 may be either 1% or 15% of those assets and liabilities, whichever is greater. Any significant or non-significant investment (investment in a non-refined asset or a non-refined asset) shall be deemed to be an asset, liability, or capital asset, if the net effect of the beneficial owner or beneficial interest owner in the unlisted foreign currency assets is to reduce foreign exchange rates or to make, in that case, to decrease exchange rate earnings. For example, a corporation may, as a result of mergers or acquisitions, have a significant gain or loss in its foreign currency assets. (For instance, a merger would have an effect of, among other things, increasing the fair value of foreign currency assets as a result of (among other things) changing the fair value of foreign currency currency liabilities. Therefore, for a transaction that could result in a U.S. national or world currency loss (as described in Sec. 13.1804.1 of CFR Part 129, C.S.A. and Rule 130.17 of the FEDERAL ISD Regulations) the corporation will have an asset, liability, or capital asset, regardless of whether those assets or liabilities are of less than 30% of net assets for the previous financial year and the corporation has not acquired any such assets. The amount in the Annual Report or any related filing or report as of the date of this rule may only be the following: the beneficial owner’s or beneficial interest owner’s or beneficial interest owner’s, if any, dividends and interest on the outstanding balance sheet (the “Balance Sheet Index”), and its shares held by the beneficial owner in that fund. (See Section 6.2.5 of this rule; but see also Section 3.5(f) of this rule for information on the number of shares held by a beneficial owner and their interests in that portfolio. The beneficial owner’s or beneficial interest owner’s, if any, interest in any foreign currency held in the U.S. or its territories (including, but not limited to, U.S. dollars (in addition to U.S. shares of foreign exchange)), at the least on June 30 of each financial year, exceeds all other interests held in the current portfolio. In determining the amount of beneficial owner’s or beneficial interest owner’s holdings in the Balance Sheet Index, the benefit of a foreign currency may be greater if it reflects (i) the relative strength of foreign currency deposits in the assets of the beneficial owner and (ii) the value of both the beneficial owner’s and beneficial interest owner’s or beneficial interest owner’s preferred currency holdings. A company may hold beneficial owner’s ownership percentages between 5% to 10% of the total present and future total interest in a foreign currency portfolio, (including, but not limited to, U.S. shares of foreign exchange), (3)(a) and $11 million. Shares of the Company’s foreign currency holdings in the Balance Sheet Index will be deemed to be 50% (5%) of the U.S. foreign currency holdings in the assets of the beneficial owner in that fund. (b) In determining whether a transaction is related to the beneficial owner or beneficial interest owner in foreign currencies or shares, the profit to the beneficial owner’s or beneficial interest owner’s foreign currency
Many accounting and accounting practice guidelines have been developed using various and sometimes subjective methods of assessing the assets &/or liabilities of business and those of individual businesses. These include:
In the context of an accounting case, a financial statement is an account of an action or transaction carried out by a business. An accountant usually carries out those accounts for each business business, where possible, including if you are a company and do business in, for example, a government organization or a municipal government. A business also usually has its accounts with a financial intermediary that handles the business, business assets, and the liabilities such as pension plans, government contracts, and a variety of other assets. If you do not have a financial intermediary, you generally do not carry your account on a business bank account (Guechtsen, Schwab 6).
In the context of an accounting case, a financial statement is an account of an action or transaction carried out by a business. An accountant usually carries out those accounts for each business business, where possible, including if you are a company and do business in, for example, a government organization or a municipal government. A business also usually has its accounts with a financial intermediary that handles the business, business assets, and the liabilities such as pension plans, government contracts, and a variety of other assets. If you do not have a financial intermediary, you generally do not carry your account on a business bank account (Guechtsen, Schwab 6). In the context of the corporate accounting practice, a statement of profit & loss is usually also used as a measure to evaluate whether or not a statement of loss has been made. It contains a list of the assets, liabilities, and principalities held by the business and also includes estimates of the total profit and loss of each business for each year. This calculation is used to calculate the profit of companies with an equity offering and to determine the amount of capital reserves that the business can possibly retain or return under the stock options
The accounting of the assets and liabilities is a process. Each business can have its own accounts ⇂ (Johannes, Guechtsen, % Kohl, Schwab 11). A business must account for its financials in accordance with its various accounting activities. Each business is expected to have an understanding of who is paying what and how the company intends on paying them. The process of accounting also includes making necessary adjustments. The accounting also involves a thorough examination of many of the issues that define how a business treats its assets &/or liabilities. For instance, a business that is making significant investments should first have an objective for assessing its assets in any given situation. On the basis of these activities, the balance sheet must be prepared in light of all the issues. In this manner, there are some additional rules that, when necessary, enable the business to accurately measure its assets in a more complete way.
The Accounting of the Assets and Disposable Liabilities Act of 1998
Regulation 26.03/2001 (Cth) includes:
– In general, it requires a business to register and/or set aside at the end of each financial year an information on each asset that is listed in the Annual Report. The financial year is the end of the financial year and all other financial transactions related to that financial year. The amount in the Annual Report for a business under Regulation 26.03/2001 may be either 1% or 15% of those assets and liabilities, whichever is greater. Any significant or non-significant investment (investment in a non-refined asset or a non-refined asset) shall be deemed to be an asset, liability, or capital asset, if the net effect of the beneficial owner or beneficial interest owner in the unlisted foreign currency assets is to reduce foreign exchange rates or to make, in that case, to decrease exchange rate earnings. For example, a corporation may, as a result of mergers or acquisitions, have a significant gain or loss in its foreign currency assets. (For instance, a merger would have an effect of, among other things, increasing the fair value of foreign currency assets as a result of (among other things) changing the fair value of foreign currency currency liabilities. Therefore, for a transaction that could result in a U.S. national or world currency loss (as described in Sec. 13.1804.1 of CFR Part 129, C.S.A. and Rule 130.17 of the FEDERAL ISD Regulations) the corporation will have an asset, liability, or capital asset, regardless of whether those assets or liabilities are of less than 30% of net assets for the previous financial year and the corporation has not acquired any such assets. The amount in the Annual Report or any related filing or report as of the date of this rule may only be the following: the beneficial owner’s or beneficial interest owner’s or beneficial interest owner’s, if any, dividends and interest on the outstanding balance sheet (the “Balance Sheet Index”), and its shares held by the beneficial owner in that fund. (See Section 6.2.5 of this rule; but see also Section 3.5(f) of this rule for information on the number of shares held by a beneficial owner and their interests in that portfolio. The beneficial owner’s or beneficial interest owner’s, if any, interest in any foreign currency held in the U.S. or its territories (including, but not limited to, U.S. dollars (in addition to U.S. shares of foreign exchange)), at the least on June 30 of each financial year, exceeds all other interests held in the current portfolio. In determining the amount of beneficial owner’s or beneficial interest owner’s holdings in the Balance Sheet Index, the benefit of a foreign currency may be greater if it reflects (i) the relative strength of foreign currency deposits in the assets of the beneficial owner and (ii) the value of both the beneficial owner’s and beneficial interest owner’s or beneficial interest owner’s preferred currency holdings. A company may hold beneficial owner’s ownership percentages between 5% to 10% of the total present and future total interest in a foreign currency portfolio, (including, but not limited to, U.S. shares of foreign exchange), (3)(a) and $11 million. Shares of the Company’s foreign currency holdings in the Balance Sheet Index will be deemed to be 50% (5%) of the U.S. foreign currency holdings in the assets of the beneficial owner in that fund. (b) In determining whether a transaction is related to the beneficial owner or beneficial interest owner in foreign currencies or shares, the profit to the beneficial owner’s or beneficial interest owner’s foreign currency
Many accounting and accounting practice guidelines have been developed using various and sometimes subjective methods of assessing the assets &/or liabilities of business and those of individual businesses. These include:
In the context of an accounting case, a financial statement is an account of an action or transaction carried out by a business. An accountant usually carries out those accounts for each business business, where possible, including if you are a company and do business in, for example, a government organization or a municipal government. A business also usually has its accounts with a financial intermediary that handles the business, business assets, and the liabilities such as pension plans, government contracts, and a variety of other assets. If you do not have a financial intermediary, you generally do not carry your account on a business bank account (Guechtsen, Schwab 6).
In the context of an accounting case, a financial statement is an account of an action or transaction carried out by a business. An accountant usually carries out those accounts for each business business, where possible, including if you are a company and do business in, for example, a government organization or a municipal government. A business also usually has its accounts with a financial intermediary that handles the business, business assets, and the liabilities such as pension plans, government contracts, and a variety of other assets. If you do not have a financial intermediary, you generally do not carry your account on a business bank account (Guechtsen, Schwab 6). In the context of the corporate accounting practice, a statement of profit & loss is usually also used as a measure to evaluate whether or not a statement of loss has been made. It contains a list of the assets, liabilities, and principalities held by the business and also includes estimates of the total profit and loss of each business for each year. This calculation is used to calculate the profit of companies with an equity offering and to determine the amount of capital reserves that the business can possibly retain or return under the stock options
The second financial statement is “to show how successfully your business performed during a period of time, you report its revenues and expenses in an income statement” (Kimmel, Weygandt, & Kieso 12). The income statements purpose is to report how successful or unsuccessful a business has been over a specific period of time. A list of the businesses revenues and expenses are listed on its income statement. Income statements reflect past performance and are useful in predicting future performance of any given company.
The third financial statement is “to indicate how much of precious income was distributed to you and the other owners of your business in the form of dividends, and how much was retained in the business to allow for future growth, you present a retained earnings statement” (Kimmel, Weygandt, & Kieso 12). The purpose of a retained earnings statement is to illustrate how profitable a business was, how much dividends to pay to their shareholders, and how much they kept for future expansion of their business. It also illustrates any fluctuation in retained earnings during the specific period.
The fourth and final financial statement is “to show where your business obtained cash during a period of time and how that cash was used, you present a statement of cash flows” (Kimmel, Weygandt, & Kieso 12). The main purpose of the statement of cash flows is to provide the cash receipts and cash payments for a business from a specific period. This is important because it represents a companys operating, investing, and financial activities for the specific period. The statement of cash flows also illustrates any increase or decrease in cash and the amount of cash that is left.
These four financial statements can be useful to internal users such as managers, marketing departments, and employees because they all report