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Title: Overview of Accounting

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Subject: Business
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Date: May 30, 2003
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Length: 4 / 1059
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The ncome statement and balance sheet uses the accrual method of accounting. This means revenues and expenses are only recognized as they occur rather than when the cash exchanges hands. 3. Statement of retained earnings: explains the changes in a company's retained earnings over the reporting period...

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Statement of retained earnings: explains the changes in a company's retained earnings over the reporting period. 4. Statement of cash flows: reports on a company's cash flow activities, particularly its operating, investing and financing activities. “The purpose of this statement is to emphasize the critical nature of cash flow to the operations of the firm...

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