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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 741 |
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The statement of retained earnings is a part of the balance sheet. "The retained earnings account on the balance sheet is said to represent an "accumulation of earnings" since net profits and losses are added/subtracted from the account from period to period" (Accounting School, 2007)
Nature of Financial Statements
Financial statements are written reports of data in accounting terms about a company that are considered to be fair and precise...
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Financial statements report characteristics of the business that are pertinent for investors, creditors and decision makers.
Use of Financial Accounting Information in Making Business Decisions
"Business financial statements are necessary for those who are looking to obtain bank loans, enter into various business transactions, sell their business, and in making other business decisions" (Orion Systems, 2007)...
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