Financial Statement Differentiation Paper Acc/561

Topics: Cash flow, Financial statements, Balance sheet Pages: 2 (536 words) Published: March 18, 2012
Financial Statement Differentiation Paper

Financial Statement Differentiation Paper

All owners and business managers need to have current financial information to take decisions on its future operations. The financial statements are the documents to be prepared by the company at the end of the accounting period in order to meet the financial and economic performance in the activities of his company over a period. Balance Sheet

Goods and credit reports at a specific time. Also known as state of the financial situation and the present both the assets and rights available to the company. As financing sources to which he had to resort to obtain, serve as a basis for assessing the financial situation of the company. Income Statement

Indicates the success or failure of the operations of the company for a period of time. The Income Statement should not only provide information on the volume of the result of the company, but also on the causes of this result. This will separate the various receipts and expenditures according to the cause that motivates them. Retained Earnings Statement

Retained earnings refer to the portion of the dividends distributed to partners or shareholders. When determining the usefulness of a given year, we proceed to distribute the company's partners, and in some cases, the assembly of partners or shareholders decides not to distribute all profits, leaving part of them or even all retained.

One of the reasons why the earnings are retained is to protect the liquidity of the company. By not giving all profits to the partners, the company can increase its working capital to make investments or to pay financial obligations thus reducing financing costs. Statement of cash flows

The main purpose of a cash flow statement is to provide financial information about cash receipts and cash payments of a company during a specific period of time.
The goal of cash flow is basically to determine the company's...
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