IntroductionThis paper lead define the goal of accounting and throw up the four basic fiscal statements. These fiscal statements include, the income statement, retained dough statement, balance sheet and statement of cash flows. This paper leave further explain how these financial statements are related with severally other and why they are useful to business managers, investors, creditors, and employees. AccountingThe invention of accounting is to identify, record and communicate the economic condition of a company for its internal and external audience. Internally, accounting is useful for reporting the financial condition of the company to all departments in a company including sales, human resources and operations. Accounting gives the various departments information they motivate to conduct their operations efficiently. Examples include the sales department deuce-ace how much they merchantman price their products or services, human resources taste percepti on how much they tidy sum pay the employees and operations how much they can spend on various projects. Executives and chairmen need to infer how they will make changes with the way the company operates. External users include shareholders whom bequest stock in the company and creditors. Banks need to know what the financial condition of the company is and therefore, weigh the risks of loaning money.
The accounting records of a company will help a bank conceive exactly how profitable a company is, what their assets are outlay and how lasting a company is. Investors want to know how motionless a company is before pu rchasing stock. Suppliers want to contrive! the accounting information about a company to check their risk in getting paid on precondition for supplying the goods and services to a company with credit terms. regulatory agencies such as the IRS want to see the accounting records of a company to ensure they are operating by jolty government rules and properly reporting their... If you want to get a full essay, order it on our website: OrderCustomPaper.com
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