Major Financial Statement

Objectives 1

Identify the major financial statements and other means of financial reporting.

The essential characteristics of accounting are:

1. the identification, measurement, and communication of financial information about
2. economic entities to 
3. interested parties.

Financial accounting is the process that culminates in the preparation of financial reports on the enterprise for use by both internal and external parties.

Users of these financial reports include investors, creditors, managers, unions, and government agencies.

Managerial Accounting is the process of identifying , measuring, analyzing, and communicating financial information needed by management to plan, control, and evaluate a company's operations.

Financial Statements are the principal means through which a company communicates its financial information to those outside it.These statements provide a company's most frequently provided are:

1. the balance sheet,
2. the income statement,
3. the statement of cash flows, and
4. the statement of owners' or stockholders' equity.

Two types of financial information:

1. the basic financial statements and
2. related disclosures.