Accounting And Four Financial Statements

accountancy and Four Financial Statements ACC / 280 September 19, 2011 University of Phoenix get up Accounting impart be described and discussed in detail, allowing for a clear thought of what invoice is. Scandals pertaining to accounting bequeath be discussed in put up of magnitude to get full idiom on the importance of it. In addition, the four basic monetary statements that atomic number 18 involved in accounting will all(prenominal) be defined, discussed, and the importance of severally and how they interact with each other will be discussed. How they are interrelated with each other, and why they are useful to managers, investors, creditors, and employees will be discussed. Accounting dates back to 7,000 years ago in Mesopotamia. Assyrians relied on accounting to record the growth of crops and herds. Accounting is the bidding of communicating financial information about a trading or good deal to users, such as: stakeholders, managers, investors, creditors, and employees. (Britannica, 2011) According to the Oxford incline Dictionary, accounting is exclusively defined as the duties performed by an accountant. It involves recording, classifying, and summarizing in terms of money, transactions, and events.

(Britannica, 2011) there are four financial statements decisive to evaluate the motion or routine of a backup: isotropy sheet, income statement, bear earnings, cash flows. The balance sheet is use to report the financial position of an accounting entity at a particular target in time. (QuickMBA, 1999-2000) The formula, used to calculate the balance sheet is as follow! s: Assets = Liabilities + Equity. (QuickMBA, 1999-2000) Assets can be either frozen(p) or current. Fixed assets such as: land, building, and/or equipment are usually recorded in historic address. Historic cost is an approach to accounting victimization asset values base on the actual total on money paying(a) for assets without inflation adjustment. Current assets such as: cash, account receivables, inventory,...If you involve to get a full essay, order it on our website: OrderCustomPaper.com

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