The core of accounting orbits around the basic financial statements of an organization which reveals the status of the business performance and well-being (Harrison, 2014). There are several types of financial statements that contributes foresight of different entities of an organization. These supporting documents consist of income statements, statement of retained earnings, balance sheets, cash flow statements and shareholders’ equity statements. I view all of the financial statements as a networking system, which give and rely on each other for information. I think it is critical that one must first understand and analyze the relationships among the financial statements to gain accuracy in their reporting. There is a strategic method of equations that support and strengthen the accounting decisions that are made daily in the business world. In fact, each financial statement holds a unique value.
The income statements are the reports of all expense and revenue accounts that reveals the organization’s status of its net income or net loss. The income statement is also ...
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...ial responsibility of corporations and consumers have be magnified in the recent years.
Braun, K. and Tietz, W. (2014). Introduction to managerial accounting. Pearson Learning. pp.
Foner, E. and Garraty, A. (1991). The reader’s companion to american history. Houghton
Mifflin Harcourt Publishing. Retrieved from http://www.history.com/topics/securities-and-exchange-commission
Harrison, W., Horngren, C., and Thomas, C. (2014). The Financial Statements. Boston. Pearson
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Reeves, L. (2016). The Purpose of a Balance Sheet & Income Statement, Demand Media.
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