Explain the purpose of each of the 4 basic financial statements? How do managers and employees use them? How about investors and creditors?© BrainMass Inc. brainmass.com October 2, 2020, 4:37 am ad1c9bdddf
1. Balance sheet
Purpose: To show the economic resources (assets), liabilities and the net (equity) at a point in time.
2. Income Statement
Purpose: To show if the revenues of the period exceed the expenses of the period (profit) or not.
3. Statement of Cash Flow
Purpose: To show the sources and uses of cash, sorted by operating, investing and financing activities.
4. Statement of ...
Your tutorial is 246 words and describes the four basic financial statements and gives examples of how managers, employees, creditor and investors may use the financial statements.