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Four Basic Financial Statements 1

Four Basic Financial Statements

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Title: Four Basic Financial Statements

Essay Details:

Subject: Business

Author: Alma B

Date: November 23, 2015

Level: University

Grade: A

Length: 2 / 561

Essay text:

The Income Statement uses the matching concept, which means the expenses are matched with the revenue generated in the same time period as the expenses. If the fees earned are greater than the operating expenses, then the company has generated a net profit. If the expenses are greater than the fees earned, then the company has a net loss. The Retained Earnings shows the changes in the retained earnings. The Balance Sheet displays the company's assets, liabilities and the owner's equity. The equation for the balance sheet to equal (balance) is asset = liabilities + OE. The Statement of Cash Flows consists of three sections, cash flow from operating activities, cash flows from investing activities, and cash flows from financing activities...

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