Question and Answers from Accounting

Essay by mysterygirl_dangerUniversity, Bachelor'sA+, February 2008

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What are the four basic financial statements?The four basic financial statements are: Income statement, earnings statement, balance sheet, and statement of cash flow2.What do the different financial statements tell you about a company?The income statement is to report the success or profitability of the company's operations over a specific period of time.

The information provided by the earnings statement indicates the reasons why retained earnings increased or decreased during the period.

The balance sheet is like a snapshot of the company's financial condition at a specific moment in time (usually the month-end or year-end).

The statement of cash flows reports the cash effects of a company's operations during a period, its investing transactions, its financing transactions, the net increase or decrease in cash during the period, and the cash amount at the end of the period.

3. Which financial statement is the most useful? Why?The most useful financial statement in my opinion is the statement of cash flow because it shows where the cash came from, what the cash was used for and it shows the changes in the balance during that period of time.

4.How do managers in your organization use information presented in financial statements?Managers in my organization use information presented in financial statements to inform involved individuals with important financial data.

Week 1 DQ 21. What do you think of when you hear the word debit?When I hear the word debit from a banking standpoint I automatically think of money being taken away from my account. The monies are no longer there and the balance on the account is decreasing. For example when I swipe my bank card it debits the account meaning that the money is more than likely taken from the account right away.

2. What do you think of when you hear...