Financial Statement

Financial Statements Investors did non question accounting practices and methods as desire as company profits remained positive. This was the accepted norm until WorldCom and ENRON were caught manipulating the system. The counsel of these companies had convinced the accounting companies to go along with the plan of deceiving the human beings to enhance company profits. These were not the only two companies caught misguide shareholders. The American Government implemented the Sarbanes Oxley Act of 2002 at the pass of the American people. The act requires independent accounting firms conduct audits and penalties for companies not in compliance. Accounting standards have been established to eliminate companies ramble from ethical accounting practices. The following paper will set the four underlying types of financial statements and how the statements are procedureful to managers, investors, creditors, and employees. mind the financials of a company is not easy unless an accurate exhibit is maintained. According to Harold Geneen to be good at your business, you have to receive the numbers â€" cold. Success in any business comes screen to the numbers. You will rely on them to make decisions, and managers will use them to evaluate your performance.(Weygandt, 2008, p.

2) Companies must monitor expenses, assets, liabilities, and communicate this internally as well as to the public. The accounting process is relatively uncomplicated and consists of three basic activitiesâ€"it identifies, records, and communicates the economic events of an organization to interested users.(Weygandt, 2008, p. 4) An specimen of something a company identifies would be the product produced. The company would receive how much product is produced and record the information. The final process would be to communicate the information to the public via financial statements. The scenario described is basic in function because the actual procedure monitors expenses, assets, income and loss, as well... If you pauperism to get a full essay, order it on our website: Orderessay

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