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Accounting: The Four Types Of Financial Statements

752 words - 4 pages

Accounting Wizard
Lorenzo Crawford
ACC100
Ms. Galarza
5/28/2014

When it comes to Accounting, there are four types of financial statements. These statements are critical when managing a business. The four types of financial statements are Statement of Financial Position, Income Statement, Statement of Changes in Equity, and Cash Flow Statement. Statement of Financial Position is the company’s financial position of an entity at any given time. The Statement of financial Position is composed of three things, which are assets, equity, and liabilities. Income Statement is also known as “The Profit and Loss Statement,” is a report that underlines the company’s financial performance. It ...view middle of the document...

The account looks after the business or individual user’s financial records. The accountant has good knowledge on the cash flow, balance sheet, owners’ equity, and chart of accounts. This information is critical to running a business. Accountant can be looked at as the assistant manager of the accounting world due to the fact that a Certified Public Accountant can do more than an accountant. CPA’s are regulated by the state. They can give advice on the financial sides of a company. Most company would look to a CPA as one of the financial advisors, and make actions based on the advice given. Both are equally important. Accountant CPA or not, they are able to manage, budget and plan financial pathways for businesses. Keeping track of our money spending, trades overseas, and goal planning is essential to the United States.
PC4US would be the name of my company. My company is a computer repair company. We would be a service to other businesses worldwide. Companies would hire our contractors to maintain their PC’s, servers, printers, and user permissions. My company would only need to focus on Regular Checking, Pay Roll Checking, Accounts, and Equipment, when it comes to our chart of accounts. Most of the companies that we support would have to add Prepaid Insurance, Current Liabilities, Long-term Liabilities, and Marketing...

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