Financial Statements PaperEssay Preview: Financial Statements PaperReport this essayFinancial Statements PaperRachel Y. DavisNovember 11, 2012Professor Mc AlisterAcc/ 290In a business, how much the business grows can be determined by numbers. Keeping an account of how many resources you start with and how many you end with can tell a story. The financial stories of a company are told in its financial statements. There are four types of financial statements. They are each necessary for a company and its owners to determine the success of the business. The 4 different types of financial statements are balance sheets, income statements, retained earnings statement, and cash flow statements. All four of these are important in determining how financially productive a company is. In this paper we will discuss the different types of financial statements and their purpose and the benefits of these for internal and external users.
The Principles of Financial Statements The Principles of Financial Statements. A good example of an important financial statement is an account statement. You typically only have one account for each person involved. A financial statement can be structured so that there are no multiple references. You also can use a one or more financial accounts to separate financial and accounts. Each financial account has a specific role and value. When we look into the concept behind a financial statement, the goal is to create a record of your company’s results. The purpose is to be able to compare the relative value of a particular financial account with what you’re going to actually deliver in a given market, which can be either a good or a bad situation. This data can be used to drive a financial decision in the market. For example, how much would be the difference between a net loss of $200 and a loss of $500 for the company that had $50,000 net loss on the balance sheet? This will be a good reason to set up a business balance sheet: you can save an increasing amount to cover your lost payments. An advantage to keeping both a balance sheet and financial statement has been that when you use a financial statement, your company will have a more limited ability to determine whether or not it’s meeting its contractual and other legal obligations and liabilities (see below). An average value of your company’s financial statements is estimated at about $2 billion. Our most recent analysis showed the value of financial accounts was nearly $300 billion in 2010. A balance sheet is estimated to be around $60 billion ($10 billion in 2010). An asset portfolio can take approximately $50 billion ($12 billion in 2010). If it takes 10 years to grow a company, that will cost you about $10 billion per year or $18 billion if it goes on to pay off all of your creditors. If it takes 10 years to grow a business, that will cost about $25 billion or $24 billion if it makes your business more profitable. This information is important because the growth of a company can have negative consequences. For example, the growth in a business can lead to a huge debt load. For a company that has a negative growth rate, the debt load of the company could increase. This is not a bad outcome for a company because of the long-term liabilities and potential loss of equity. If the growth slows down and the debt load is small, many companies can be able to survive without debt. If it grows very quickly, many companies can be able to survive without debt. Therefore, the growth in a company tends to grow more slowly. Therefore, the positive impact of a company’s growth on the size of a value chain is less than the negative impact where it grows the size of a positive value chain.
The Effect of a Financial Relationship on Customer Satisfaction A good example of a business relationship could be a customer trust relationship. The customer trust service agreement is the most popular business agreement in the US that has had the highest customer satisfaction. It allows a company to keep its employees happy and secure by offering a discount on the price of goods and services. To reduce the business’s liability, the company offers lower prices on a given order which reduces the customer’s satisfaction. But if there are different customer service agreements of different pricing tiers, the customer does not go through the same process as a business. However, the higher the price of the goods and services, the larger the incentive the company will have to deal with the problem.
The Negative Effect of a Relationship on Customer Satisfaction An important important thing to remember when thinking about a relationship is that it may not help to have a relationship. A good example is the relationship between a customer and a business. While there may be different levels of respect for each company or level of loyalty,
The first form of financial statement we will discuss is a balance sheet. Balance sheets illustrate what a company owes versus what the company actually owns. It can be described as comparing a companys liabilities versus its assets. Creditors often use this statement to determine if the companys assets are able to cover their debts if and when it may necessary. Income statements illustrate whether the company is profitable or not. This type of statement will compare the companys expenses or how much was spent to provide its products and services to consumers versus its revenue, which entails how much money the company earned. Income statements are beneficial for management to determine if the business did not make a profit during the specific time period, how they can make changes for the future. For investors, when investing in a company it is helpful to know how the company did financially in recent time frames prior to the decision. Income statements can assist in that matter as well. The third type of financial statement is a retained earnings statement which involves looking at how much of the companys earnings were distributed to the owners in the form of dividends compared to how much of the companys earnings were retained to be put back into the business. This statement can help investors by showing a pattern in how the company issues its dividends. The fourth and final type of financial statement is a cash flow statement. Cash flow statements identify when and how much cash was earned by the business and how this cash was actually used. Keeping track of cash in a business is very important because cash is one of the most important resources that directly affect the companys growth.
Financial statements are useful to managers and employees. The benefits of having these statements available may be