Need for Accurate Financial Statements

Need for Accurate Financial Statements Presenting a strong, healthy pecuniary picture of an entity or company is crucial in the knowledge base of disdain. In order to present this picture companies use an knowledge system c tout ensembleed accounting system, which measures the business activity. The key product of accounting is a set of reports called fiscal statements.(Horngren, Harrison, Oliver, p2) These statements report on the entity in foothold of money, or in monetary terms in both inbred and outdoor(a) controls with all entropy on the financial statement translating into dollars and cents. The accounting world is divided into two field; financial and managerial, with each accounting field gathering development to use within the different entities. Financial accounting gathers and shares info for outsiders, such as investors, creditors, and government revenue enhancement authorities. And managerial accounting gathers and shares data for insiders, such as management, treasurers and other various internal departments, but both fields of accounting need this data to make the best informed decisions for the business.

Therefore, it is extremely crucial to note accurate financial statements since accounting is the measurement and reporting of financial information to various users regarding the economic activities of the firm (Russo, 2009), which will be discussed in the following text. Many components depend on punctual and accurate financial statements. Chief executive officers, owners and partners must all examine the financial statements and have a good discernment of them, as well as all internal and external stakeholders, such as employees, suppliers, landlord, bankers, legal counsel, consultants, leasing companies, Federal and State tax agencies, and credit agencies. According to CFO-Services reports All (parties involved) depend upon and have a vested interest in the issuance of timely and accurate business financial Financial Statements 3 statements, the review of the financial... If you want to get a full essay, order it on our website: Orderessay

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