Financial Statement Week One

Financial Statement Week One

Financial Statements Paper
Jocelyn Hudson
Financial Statements Paper

      According to the University of Phoenix Week one supplement the assignment states to prepare a 700- to 1,050-word paper in which you define the purpose of accounting and identify the four basic financial statements. Be sure to explain how they are interrelated with each other, and why they are useful to managers, investors, creditors, and employees. The purpose of this paper is to identify the four basic financial statements and define the purpose of accounting and include how the four basic financial statements are interrelated.

Purpose of Accounting

      Accounting standards must loyally symbolize the economic matter of business transactions and provide information in an unbiased manner to all financial market members. Different organization use different methods to store and maintain their data in accounting. Accounting provides information related to an organization it is mostly used to track companies expenses and profits and when those figures are produced, the company can then evaluate its financial status. Accounting systems can be simple or quite complex depending upon the organization.
      The system for maintaining financial systems is a form of business control that allows institutions, small and large companies, to document, examine and recall vital monetary knowledge that is used to verify a company's economic position and offer information and clarity needed to make firm economic judgment. Managers who are accountants must make sure that they are analyzing all data correctly and ethically. Managers who are in the position of an accountant they must set realistic goals for their company and collect all information in a timely manner.
      Accounting provides the exact numbers for managers to work with in a company. A number of parameters are involved in accounting with bookkeeping being the first. Bookkeeping is the backbone of any major business small, or...