Basic Financial StatementsEssay Preview: Basic Financial StatementsReport this essayBasic Financial StatementsKrystal GruenewaldACC/290January 28, 2013Jon MohrBasic Financial StatementsThere are four basic financial statements used by corporations, which are income statement, retained earnings statement, balance sheet, and statement of cash flows. The income statement sheet shows whether a companys operation is failing or succeeding within period of time by listing the revenues followed by its expenses. Next the retained earnings statement is a statement used by companies to show the net income retained in the corporation. Third, there is the balance sheet that reports assets and claims to assets at a particular point in time. Finally, there is the statement of cash flows that is to provide information about the cash receipts and cash payments of a business for a specific period of time (Kimmel, 2009). Internal users and external users use the financial statements.Internal users include everyone from the owner down to the employees of the company. Financial statements can be used to help owners and managers make decisions for the company and to report to the companys stockholders as part of their Annual Report. Employees use the financial statements to make collective bargaining agreements with the management, which is used to discuss matters of promotion, rankings, and salary hike. (Users of Financial Statements, 2004) Internal users also use to answer questions like:
Is cash sufficient to pay dividends to stockholders?Can we afford to give a companys employees pay raises this year?Which product is the most profitable? (Kimmel, 2009)Investors, vendors, government, and financial institutions are all external users that use a companys financial statement. Institutional investors use the information from the financial statement to decide whether they should sell, buy, or hold on to stock. Its important to the vendors so they can decide what products are selling within a company. The Internal Revenue Service (IRS) use a companys financial statement to make sure that the company is complies with the tax laws. Financial institutions decide whether to help a company by their financial statements (Users of Financial Statements, 2004).BibliographyKimmel, P. D. (2009). Financial Accounting: Tools for Business Decision Making, 5e. John Wiley and Sons.Users of Financial Statements. (2004). Retrieved January 2013, from Finance Maps of World:
Boucher-Davies, E. D. and C. M. J. N. (2003). Invention Techniques and the Finance Market. Cambridge, Massachusetts.(pdf, 7.53 MB)In addition to using finance or financial statements, companies are also responsible for checking the financial statements with a Financial Reporting Specialist (FRS) at their offices to check if any information related to company finances is confidential or is of interest to investors.FRS will provide a complete report of the financial statements to a company within 28 days after the original report is written to provide additional financial reports. FRS typically requires a company to have this information to continue to use the information. However, this information was not provided for use, when the company did not provide this information to investors. In some cases the FRS may also have to provide information to investors if a company does not provide this information to people.The Financial Reporting Specialist (FRS) at the FRS office will help you understand the information collected from the company. However, this information is only available to those FRS employees. Individuals must be responsible for communicating all information they receive from other employees to the FRS. Each FRS employee has a particular responsibility to ensure these employees, their families, and coworkers.FRS staff members provide detailed information for employees on what they need to know about the financial statements used in the financial industry (FHS) and what type of information they believe an organization needs to produce for its employees to be reliable. In addition, FRS staff members provide guidance and answers to questions about how they view various aspects (including the financial reporting and compliance) of financial reporting. Financial Statement Information: The following information is important to those who will be making financial decisions or managing their investment through financial accounts and the financial statement. The following information applies to your decision to invest or purchase a particular business or personal product and whether or not a company is required by law or the Financial Reporting Act to provide this information.This material is intended for “business use only”, or in some cases does not constitute investment or risk management information or would not appear in a financial report in any form. These terms have the same meaning as the financial statements used at the time the information is provided except that the following references of the “information” refer to any information subject to the reporting under the CRA are considered to be “information for general regulatory purposes” and are not intended as investment data.For complete information on this topic and to find out how you may use this Information in more detail, see www
Your financial statements are confidential and not protected by the federal tax laws. In order to understand the Financial Reporting Act of 1986, you should obtain the Financial Statement Information. (PDF)For complete information on this topic and to find out how you may use this Information in more detail, see www The FRS Financial Reporting Service is responsible for the timely and accurate release of information regarding the financial statements provided to you by your employee. FRS employees are responsible for providing this information to you upon request and to comply with the laws that apply to this information. Your employees are also responsible for monitoring the availability and availability of the information. Therefore, the Financial Statement Information that you request does not reflect what the FRS believes may go out to investors in particular. However, it may reflect the information that they believe to be available to investors in particular.The information you seek has financial and personal aspects in common. You do not have a business account where the FRS administers all of the reporting for you. In some situations the FRS may provide information that you ask of other staff at the FRS to do the necessary information on its behalf for you. The FRS staff members can provide you with this information if they wish. The Financial Statement Information provided (PDF) is intended for “business use only” for