Financial Statements

Financial Statement Differentiation Paper
Tara Bryant
June 17, 2013
William Montgomery

Financial Statement Differentiation Paper
The four basic financial statements provide a picture of a company’s financial health.     The statements apply to a period of time.   According to Finance Maps of World (2013), the four main financial statements are income statements, balance sheets, statements of cash flow, and statements of retained earnings.   Each offers unique information related to the financial health of a company.   Income statements report revenues minus the expenses incurred during a specific period.   Balance sheets   report the amount of assets, liabilities, and stockholders' equity during a period of time.   Income statements reports revenues minus the expenses incurred during a specific period.   Statements of cash flows report the cash coming in as well as being paid out in financing, operating and investing during a specific period of time.   The statements of retained earnings report the way net income and the distribution of dividends affect the financial position of the company during the accounting period.   The following will provide detailed information on the various financial statements and discuss the most interests each statement is to investors, creditors and managers.  
The income statement contains information about a company’s revenue.   This statement proves to be the most useful financial statement for investors.     Investors must review these statements closely to stay abreast of the financial dealings with the companies they choose invest in.   The income statement shows a company’s income and expenses.   Investors use income statements to review the return of funds.   Investors what to see the stock values increase while holding the shares to increase the values of their investments.   The income statement helps investors identify how well the company has performed from a profit standpoint.   Investors can also use the...