Accounting And Four Financial Statements

history and Four Financial Statements ACC / 280 September 19, 2011 University of Phoenix fleece Accounting impart be described and discussed in detail, allowing for a clear thought of what accountancy is. Scandals pertaining to account bequeath be discussed in crop of magnitude to get full tenseness on the importance of it. In addition, the four basic pecuniary statements that atomic number 18 involved in accounting will all(prenominal) be defined, discussed, and the importance of all(prenominal) and how they interact with individually other will be discussed. How they are interrelated with each other, and why they are useful to managers, investors, creditors, and employees will be discussed. Accounting dates back to 7,000 years ago in Mesopotamia. Assyrians relied on accounting to record the growth of crops and herds. Accounting is the bidding of communicating fiscal information about a trading or company to users, such(prenominal) as: stake holders, managers, investors, creditors, and employees. (Britannica, 2011) According to the Oxford incline Dictionary, accounting is plain defined as the duties performed by an accountant. It involves recording, classifying, and summarizing in terms of money, transactions, and events. (Britannica, 2011) in that respect are four financial statements decisive to evaluate the murder or routine of a backup: isotropy sheet, income statement, retain earnings, cash flows. The balance sheet is use to report the financial position of an accounting entity at a particular operate in time. (QuickMBA, 1999-2000) The formula, used to calculate the balance sheet is as follows: Assets = Liabilities + Equity. (QuickMBA, 1999-2000) Assets can be either frozen(p) or current. Fixed assets such as: land, building, and/or equipment are usually recorded in historic address. Historic cost is an approach to accounting utilise asset values base on the actual bill on mon ey paying(a) for assets without inflation a! djustment. Current assets such as: cash, account receivables, inventory,...If you involve to get a full essay, order it on our website: OrderCustomPaper.com

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