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Four Basic Accounting Statements Free Essay, Term Paper and Book Report

The Four Basic Financial Statements Communication is an essential function of any accounting system. In addition to identifying and recording a company’s economic events, an accounting system must be able to communicate this information. Financial statements are one method of so communicating. The information contained within a company’s financial statements is useful to anyone making decisions involving the company, such as its employees, managers, investors and creditors. Financial statements, therefore, follow a uniform format which facilitates comparison between different companies. The four basic financial statements are the income statement, the retained earnings statement, the balance sheet and the statement of cash flows. Each statement begins with a heading which states the type of statement, the company’s name and the date range reported. Individually, each provides information regarding a different aspect of the company’s financial position over a period, or, in the case of the balance sheet, on a specific date. Together, these four interrelated reports of......

Word Count: 1069
Page Count: 4.2  (250 words a page / double spaced)

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