The Four Basic Financial Statements

Term Paper # 117272

Accounting > Financial
Business > Finance, Investment and Banking

An examination of the four basic types of financial statements and their relationships and uses to stakeholders.

1,040 words () | 2 sources | APA | 2009 United States

Paper Summary:

This paper explores the four basic financial statements used by companies to analyze company performance- the balance sheet, statement of cash flows, statement of retained earnings and the income statement. Furthermore, the paper examines the uses of these financial statements to both internal and external stakeholders of the corporation. Finally, the inter-relationships between the four financial statements is discussed.

From the Paper:

"Investors: The most important stakeholder in a corporation is an investor. Investors look at financial statements in detail to find out if their investment would give good returns. If a company's balance sheet shows negative worth, investors would be reluctant to invest in the company. Furthermore, investors also look at other statements to make an informed decision. For example, a potential small investor would want to look at the company's income statement to determine whether an investment would be worthwhile."

Sample of Sources Used:

Financial Statements. (n.d.). Retrieved August 4, 2009, from Wikipedia: http://en.wikipedia.org/wiki/Financial_statements
Warren, C., & Reeve, J. (2008). Financial and Managerial Accounting: Introduction to Accounting and Business.(9th edition). ThomsonNow

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APA Citation:

The Four Basic Financial Statements (2012, January 15). Retrieved February 10, 2012, from http://www.academon.com/Term-Paper-The-Four-Basic-Financial-Statements/117272

MLA Citation:

"The Four Basic Financial Statements" 15 January 2012. Web. 10 Feb. 2012. <http://www.academon.com/Term-Paper-The-Four-Basic-Financial-Statements/117272>