Write a response to the following: You have been hired into a new company to oversee the accounting department. What type of financial reports would you expect to see in your department? How will you use the financial reports available to you to make business decisions?© BrainMass Inc. brainmass.com March 4, 2021, 9:50 pm ad1c9bdddf
Financial statements (or financial reports) are formal records of the financial activities of a business, person, or other entity.
Financial statements provide an overview of a business or person's financial condition in both short and long term. All the relevant financial information of a business enterprise, presented in a structured manner and in a form easy to understand are called the financial statements. There are four basic financial statements:
1. Balance sheet: also referred to as statement of financial position or condition, reports on a company's assets, liabilities, and Ownership equity at a given point in time.
2. Income statement: also referred to as Profit and Loss statement (or a "P&L"), reports on a company's income, expenses, and profits over a period. Profit & Loss account provide information on the operation of the enterprise. These include sale and the various expenses incurred during the processing state.
3. Statement of retained earnings: explains the changes in a company's ...
This solution helps answer questions relating to accounting, financial reports and business decisions.