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Financial Statement Overviews

Describe a balance sheet, income statement, retained earnings statement, and statement of cash flows.

How does a company use these financial statements to make future business decisions?

Use and define the following terms in your paper when explaining how a company uses the information on the statements:

o Assets
o Comparative statements
o Liabilities
o Stockholder's equity

Solution Preview

This assignment is an essay on the financial statements associated most likely with for-profit entities in the incorporated status. The financial statements that are included are the balance sheet, income statement, retained earnings statement and the statement of cash flows. These statements provide cumulative information about the past performance of the entity. The past performance of an entity can be used to correct areas that need attention. If it is not broke, do not fix it. The balance sheet is used to compare the beginning and ending values of the assets. The ...

Solution Summary

This solution presents an overview of the major finacial statements issued by for-profit businesses.