Week Two Reflection Summary

ACC/290

University of Phoenix

In week one, one learned about the four basic financial statements and how they are useful to internal and external users. One also learned the rules of debit and credit and journalizing transactions.

The accounting financial statements composed of four basic financial statements. The balance sheet provides an understanding of a company's financial condition by showing what the company owns and what it owes during a particular period. The income statement reports a company's revenues and expenses; it shows any profits or losses in a specific period. The retained earnings statement shows how the company's distributed its previous income to its owners in the form of dividends and how much retained in the business. Then...