Finance For Executives
Final Paper
Cindy Humphrey
Financial Accounting Statements
Financial accounting statements are summaries of monetary data about an enterprise and are used to make informed decisions in the present and the future. They show the effects of transactions and other events by grouping them into classes according to their economic characteristics.
There are three basic financial statements which are the balance sheet, the income statement and the cash flow statement. The statements can be used by private individuals, non-profit organizations, manufacturers and service industries. The three major groups that take advantage of usefulness of financial statements are large corporations, investors and the government.
Financial statements play a big role in each of these groups financial decisions. Corporations decide how much credit to extend to customers and how much should be distributed to investors in dividends. Investors use a company's financial......
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Approximate Word Count: 825
Approximate Pages: 4 (260 words per double-spaced page) |