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Financial Statements Paper
ACC/290 – Principles of Accounting I
May 14, 2010
Adael Acosta Assessment
• Individual Assigment: Financial Statements Paper
Write a 700- to 1,050-word paper in which you do the following: o Identify the four basic financial statements. o Describe the purpose of each of the four financial statements. o Discuss how the financial statements would be useful to internal users, such as to managers and employees. o Discuss how the financial statements would be useful to external users such as investors and creditors. Format the paper consistent with APA guidelines. Abstract
Accounting is a valuable service function designed to provide accurate and timely information to internal and external stakeholders. Those stakeholders rely on four primary financial statements: the income statement, the capital statement, the balance sheet, and the statement of cash flows. Naturally, you begin by studying those four financial statements and the accounting processes that lead to their creation. Those processes include recording financial transactions in journals and then posting to the general ledger.
Financial Statements should be defined as journal entries. These entries tell a story about the daily accounting practices and they project the general assets and liabilities of any company. Journal entries must be consistent and must be entered on a regular basis. Investing in reliable accounting software would be a wise decision for any business owner. Data entries should be uniformed throughout the company and workers should understand the importance of entering data correctly.
Financial Statements are essential to professional financial reporting. The four basic financial statements and their purpose are as follows;
The balance sheet is used to present a picture of what a company owns and will also show the company’s...

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