Section 4
Conveying Accounting Information
Book
Version 3
By Boundless
By Boundless
Boundless Accounting
Accounting
by Boundless
7 concepts
Introduction to the Balance Sheet
The balance sheet is a summary of the financial balances of a company and reflects the company's solvency and financial position.
Introduction to the Income Statement
The income statement shows revenues and expenses for a specific period.
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Introduction to the Retained Earning Statement
The statement of retained earnings explains the changes in a company's retained earnings over the reporting period.
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Introduction to the Statement of Cash Flows
The cash flow statement provides information on a firm's liquidity and solvency.
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Relationships Between Statements
The four main financial statements provide relevant financial information for internal and external users.
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Financial Statement Notes
Financial statement notes explain specific items in the financial statements.
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Additional Items: Auditor and Management Reports
When an audit is performed on a company, the auditor issues a formal opinion in the form of an auditor report.