Acc 290 Financial Statements

Financial Statements

University of Phoenix

Principles of Accounting 1

ACC-290

Financial Statements

Identify the four basic financial statements

The four basic types of financial statements are balance sheet, income statement, statement of owner's equity, and lastly statement of cash flow ("The Four Financial Statements",1999-2010).

Describe the purpose of each of the four financial statements.

A balance sheet is used to summarize the finances of a company during a specific period of time. The sum of company's liabilities and the owner's equity should be equal the assets and finding the balance between the two is why this report is called a balance sheet. An explanation of the components of a balance sheet could be: Assets Liabilities Equity ("The Four...