Running head: OVERVIEW OF ACCOUNTING PAPER
Overview of Accounting Paper
*Thunderous Applause*
Thank you so much for having me on such short notice. I would not miss the chance to talk to you all about the importance of Accounting and Financial Statements. My time up here is very limited, so I will make this brief. If you have any questions, please feel free to raise your hand at anytime.
Financial statements are all the records of any business' financial activities. These statements determine how profitable a business is. They also give a synopsis of both long term and short term financial conditions. The four basic financial statements are as follows: balance sheet, income statement, statement of retained earnings and a statement of cash flows. The balance sheet is responsible for presenting companies current assets and liabilities. Examples of Assets are "cash, cash equivalent; assets held for collection, sale, or consumption" (Deloitte) Liabilities "are those to be settled within the enterprise's normal operating cycle or due within 12 months, or those held for trading, or those for which the entity does not have an unconditional right to defer payment beyond 12 months" (Deloitte) A corporations profit or loss is included in the income statement. Revenue, finance cost, tax expense are what one may typically find in this statement. The statement of retained earnings explains all changes in earnings during a certain period of time. The statement of cash flows enlightens notions as to how a company is balancing its accounts receivables and payables, managing its flow of funds. The cash flow statement provides some valuable insights are ...