It presents revenues, expenses, profits/losses, net income (the amount remaining after expenses are subtracted from revenues), and earnings per share-that is, the company’s operating results. Typically considered the most important of the financial statements, an income statement shows how much money a company made and spent over a specific period of time. Types of Financial Statements: Income Statement Read on to explore each one and the information it conveys. Students learn careful analysis of these essential documents, “with an emphasis on risk management activities and transactions impacting owner’s equity.” 3įor-profit businesses use four primary types of financial statement: the balance sheet, the income statement, the statement of cash flow, and the statement of retained earnings. William & Mary’s Online Master of Accounting (MAcc) program includes a course in Financial Statement Analysis and Valuation. While companies in the United States adhere to rules known as Generally Accepted Accounting Principles, international companies often go by the International Financial Reporting Standards (IFRS). In asking, “What are the different types of financial statements?” it’s important to remember that financial statements vary not only between companies but between countries. It’s not unusual for government agencies or accounting firms to audit an organization’s financial statements for tax, financing, or investing purposes, as well as to confirm and ensure overall accuracy and regulatory compliance. The line items in a financial statement will vary from one corporation to the next, but the most common among them are revenues, costs of goods sold, taxes, cash, marketable securities, inventory, short-term debt, long-term debt, accounts receivable, accounts payable, and cash flows from investing, operating, and financing activities. Securities and Exchange Commission (SEC) succinctly put it, “They show you where a company’s money came from, where it went, and where it is now.” 1 Financial statements are documents that convey a company’s business activities and financial performance.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |