Financial Statements

ACC 290

Financial Statements

This written essay will discuss the four basic financial statements used in accounting. It will describe the purpose of the four financial statements. How these statements would be useful to internal users, such as managers, and employees. How the external users, such as investors, and creditors would find these statements useful.

Four Basic Financial Statements

The four basic financial statements used in accounting are, the income statement, statement of retained earnings, balance sheet, and statement of cash flows. The income statement "reports the success or failure of the company's operations for a period "(Kimmel, Weygandt, & Kieso, 2011, p. 11). The company's revenues accompanied with its expenses are listed on the income...