The Role of Accounting on Business and Our Society

In: Business and Management

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Income statement – The purpose of an income statement is to provide investors with the most accurate description of the company’s profits over a period of time. It also shows how revenues and expenses result in a net income or net loss for a specific period of time.
Owner’s equity statement – The purpose of the Owner’s equity statement is the changes in retained earning that appear on the balance sheet and is most commonly influenced by income and dividends.
Balance sheet – The purpose of the balance sheet tells investors and/or banks how a company is doing financially. A balance sheet shows the big picture of a company’s Assets, Liabilities and any Owner’s equity that the company has at that particular time.
Statement of cash flow – The purpose of the statement of cash flow is, so a business owner is aware of any financial events that could have a reverse effect on the company’s ability to meet their obligations.
A balance sheet is most effective in communicating the financial health of an organization because it shows the financial transactions of a company front one point to another.
Questions: 2
A public accountants duties include preparing and verifying important financial documents, analyzing budgets and planning finances as well as bookkeeping, and auditing tasks. Public accountants can give advice and provide basic financial information from clients to corporations. Certified public accountants can do the same things that public accountant due as well as overseeing budget and financial management, create and analyze budgets, and advise management on tax ramifications of business decisions.
Accounting is an important part of any business. It records the way a business grows, and makes any suggestions on how to improve. Accounting has become one of the fastest growing careers because it expands even more each time a new business starts up. In today’s…...

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