Acc/280 Week 1

Financial Statements 1

ACC/280
Judith Bines
University of Phoenix

Financial Statements 2
Accounting is becoming one of the largest sought out careers in the world today. It is a growing business. When people think of accounting the first thing that comes to mind is money and numbers. The more that a person reads into what accounting really is, the more they will realize that it is much more than just dealing with numbers.   The career of an accountant can be rewarding to know that they are an important part of the company, but it can be a really stressful career. If mistakes are made, the company will not be able to make exact decisions for their financial future. This could make or break the company. Without the right information,   none of the decisions made will not work out for the company.
The purpose of accounting is to provide enough information to who needs it to make economic decisions.   It is an accountants job to make sure they have the information on the firms performance for any period of time. This information is given to the management team in order for them to make decisions for the firms future. This information that the accountants have control over are vital pieces of information to the companies well being.
The first of the four basic financial statements that an accountant must prepare is an income statement. The income statement gives information about the companies net income or net loss of any specific period of time. This statement can report the companies profits and losses. The statement will list the revenues of the company and then the expenses are subtracted from the revenues, this gives you the net income or loss of the company for any specific period of time.

Financial Statements 3
The next form is the retained earnings statement.   This form is explains itself. The form shows changes in the retained earnings of the firm for any specific period of time. Retained earnings is a portion of the firms net income and is... [continues]

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