Main Financial Statements in order of importance
Not what you're looking for?
What are the main financial statements? In order of importance, list the statements. Why did you rank the statements in the order you did? Why does GAAP require all statements? Why is it necessary to prepare the formal Financial Statements if all the data are on the Adjusted Trial Balance?
Purchase this Solution
Solution Summary
The 497 word solution clearly explains each of the financial statements in terms of use by readers. There are also some examples for better understanding.
Solution Preview
What are the main financial statements? In order of importance, list the statements.
Balance Sheet
Income Statement
Statement of Cash Flows
Statement of Retained Earnings
Why did you rank the statements in the order you did?
Probably because it is the order in which they are presented in a formal financial statement report. It is worth noting that the Statement of Retained Earnings might not always be a separate statement. If the details of transactions in retained earnings are very simple, that statement can be combined with the balance sheet, or even the income statement. That explains why it is listed last.
Why does GAAP require all statements?
All of the statements are important but they present entirely different types of information to a ...
Purchase this Solution
Free BrainMass Quizzes
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Motivation
This tests some key elements of major motivation theories.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media