Financial Statements And Its Impact On Our Lives Essay

Financial Statements And Its Impact On Our Lives Essay

Length: 1686 words (4.8 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

In our society the role of accounting continues to have an impact on our daily lives whether it is budgeting our homes, managing a business, or investing. In every aspect of business we are surrounded by decisions that circulates around the concepts of accounting. Accounting has gained the reputation of being the language of business. I believe that accounting has earned this reputation due to its function of being an information system that measures financial activities, assist in data reporting, and the measuring of performance within a business (Harrison, 2014). In my opinion, this language of business communicates from one accounting statement to another.
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 ...


... middle of paper ...


...ial responsibility of corporations and consumers have be magnified in the recent years.




















Reference:
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
Learning. pp.
Lohrey, J. (2015). The Horizontal Model to Show the Effects of the Payroll on Accrual. Demand
Media. http://yourbusiness.azcentral.com/horizontal-model-show-effects-payroll-accrual-29422.html
Reeves, L. (2016). The Purpose of a Balance Sheet & Income Statement, Demand Media.
http://smallbusiness.chron.com/purpose-balance-sheet-income-statement-61847.html

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Analysis of the Mission and Vision Statements of JPMorgan Chase Essay

- Introduction This paper will analyze the mission and vision statements of JPMorgan Chase & Co against the performance of the organization. An evaluation of how well the company lives out its mission and vision statement will be provided. The organization’s strategic goals link to the company’s mission and vision will be assessed. An analysis of the company’s financial performance to determine the link between the company’s strategic goals, strategy, and its financial performance. A competitive and marketing analysis of JPMorgan Chase & Co will be conducted to determine its strengths and opportunities....   [tags: Mission Statements Analysis]

Strong Essays
2211 words (6.3 pages)

Essay The Stock Market's Impact on Our Lives

- ... At the start only twenty-four brokers were allowed to participate in trading. It wasn’t until 1817 that the New York Stock Exchange began to embody something close to what we know today. All of the 24 brokers established a constitution of rules with how the exchange must operate. These rules included everything from how one ’s self could lose their membership to fines for swearing. More importantly though they protected the integrity of the exchange with it’s’ regulations. The New York Stock Exchange has had its fair share of tragedies as well....   [tags: exchange, great depression, investors]

Strong Essays
1369 words (3.9 pages)

Essay on Financial Statements And Financial Statement

- Every Number Tells a Story Financial statements can provide a wealth of information about a given organization. These statements provide information about the company’s financial position, cash flows, operations, performance and changes in the financial position. This information may be used as part of the decision making process for employees, shareholders, investors and competitors. Based upon these financial statements, key ratios are used to provide additional insight as to the financial health of a given company....   [tags: Income statement, Financial statements, Cash flow]

Strong Essays
880 words (2.5 pages)

The International Financial Reporting Standard Essay

- The IFRS is the International Financial Reporting Standard that was designed as a common global language for business affairs so that companies can understand their accounts and compare them across the international boundaries. They are a result of climbing international shareholding and trade is very important to the companies that deal with other countries. Progressively, they have been replacing a lot of different national accounting standards. These standards are developed by the International Accounting Standards Board, known as IASB, which as independent accounting standard-setting body....   [tags: accounting, business affair]

Free Essays
541 words (1.5 pages)

Essay on Financial Report On Financial Statements

- 1. Financial statements are divided into two main categories which are general and special purpose financial reports. As for the general purpose financial reports, the major users are owners, shareholders, managers, customers, the general public and so on. Turning to the special purpose financial reports which are usually required by lenders, government and creditors. These reports need to record different information for different user’s need. Profit is the most significant element for the owners because they would like to know it from the Restaurant Brands Ltd (RBD)’s statement of comprehensive income....   [tags: Financial statements, Balance sheet]

Strong Essays
1017 words (2.9 pages)

Implementation Of Interim Financial Statements Essay

- II. CORPORATION Structuring your company as a corporation provides additional benefits when compared to a partnership however it also creates more challenges. A corporation can be a more complex entity that requires specific documentation such as articles of incorporation and minutes of board of directors and stockholder meetings. Another challenge are the reporting requirements of a publicly held corporation. Two of these requirements are interim reporting and segment reporting. B. INTERIM REPORTING....   [tags: Income statement, Financial statements]

Strong Essays
2039 words (5.8 pages)

The Importance Of The Financial Statements By Ronald Campbell Essay

- Importance of the Financial Statements Ronald Campbell Principles of Accounting I ACC205 Keith Graham December 6, 2010 Importance of the Financial Statements In this paper I will talk about how important the financial statements are and why they need to be accurate for the outside business interests, and why they are not important for lenders and other outside investors. The first thing we should ask you what is a financial statement. Financial statements “are business documents that report on a business in monetary terms” (Hornger & Harrison 2007, pg.17)....   [tags: Financial statements, Income statement, Enron]

Strong Essays
979 words (2.8 pages)

Financial Statements Are So Popular With Different Users Essay

- Accounting information is a fundamental part of accounting it allows businesses to know where they financially stand, imagine a world without financial statements how would companies and organisations function. Financial statements are like gold in the financial world and are significant in the accounting industry. With an ever evolving world financial statements are now available on the web for anyone to download, in this assignment I will be examining why financial statements are so popular with different users....   [tags: Financial statements]

Strong Essays
1470 words (4.2 pages)

Essay on Financial Statements Of A Company 's Annual Performance

- “Companies’ Annual Reports have become increasingly complex over the years, sacrificing understandability for complexity”. An annual report is a detailed report for shareholders and other business partners on a company’s activities throughout the year. It is a legal requirement from the Companies Act 1985/9 that requires companies to publish their annual report and accounts. Its purpose is to present a true and fair view of the company’s annual performance and provide financial statements that are useful to existing and potential investors, shareholders, lenders and other creditors....   [tags: Financial statements]

Strong Essays
1067 words (3 pages)

Financial Statements Essay

- In recent history, there have been quite a few memorable cases of corporations manipulating financial reports in order to deceive stakeholders. Deceptive accounting practices are like a disease, and should be rooted out immediately. These practices undermine the stability of U.S. financial markets, and can make people less willing to invest in stocks. Financial reporting is the key to maintaining trust in the financial system and any manipulation should not be tolerated. The purpose of financial statements Financial statements are the primary instruments used in assessing the performance of a business and its managers (Gibson , 2013)....   [tags: financial reporting, accounting, manipulation]

Strong Essays
943 words (2.7 pages)