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Primary Financial Statements

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The paper is about four primary financial statements which are important is decision-making. Decision-making is important to operate a business as well as in an individually personal lives. Managers and business owners makes decision every day on how the business is doing financially. The four primary financial statements are Balance Sheet, Income Statement, Statement of Stockholders’ Equity, and Statement of Cash Flows. The first one is a Balance Sheet which is a financial statement with balancing cash, properties, and stockholder showing what is in the account. The second one is an Income Statement which is a statement that creates revenue and turn into a net income. The third one is a Statement of Stockholders’ Equity is done every quarter …show more content…

The purpose of a balance sheet is profitability. When managers uses a balance sheet which helps them with data and balance components. Managers uses fixed assets for information on investments. Current rates for management are stocks, inventory, and how much money is spent. Capital management rates are for equity and the overall finances for the year. Investments are found on a balance sheet when managers looking for new business(Ciuhureanu,2017).
An Income Statement is earnings of cash flows in a certain amount of time. The statement provides earnings before and after taxes well as interests. Comprehensive income is in the income statement which a revenue for sales. The sales provide a net income from the revenue and expenses. Net income is after taxes is at the end of the statement. Revenue is at the beginning and expenses in the middle (Casabona & Coville,2014).
An Statement of Stockholders’ Equity is a financial statement adjustment from a company or shareholder. The account shows earnings at the beginning and book amount to equity. The beginning balance is first with income, pensions, and even interest. Second include or exclude other adjustments may or may not affected. Last is the total balance of income and the balance of the income (Batta, Ganguly, &

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