Financial Statements Essay Example | Topics and Well Written Essays - 1000 words

Financial Statements - Essay ExampleCompanies are required file their 10-K annual pecuniary report to the Securities and Exchange Commission. The 10-K is filed within 60 days from the end of the fellowships accounting period. The 10-K is the ss standard blank form used by companies for submitting their financial reports. Interested parties can hear the 10-K Securities and Exchange Commission reports for use in enhancing their investment or divestment decisions (Wild, Shaw, Chiappetta, 2011). Part II The accounting comparability is shown as Assets = Liabilities + Capital. The additions represent all the resources of the company (Wild, Shaw, Chiappetta, 2011). Example Assets = Liabilities + Capital $ 250,000 = $ 20,000 + $ 200,000 Assets = $50,000, Accts Receivable $ 50,000. Building $200,000. Liabilities = Accounts collectable $ 5,000, Notes fabricateable $ 15,000 Capital = Bush, Capital $ 230,000, Bush, drawing $ 30,000 The company owns the resources. Cash is one of the compan ys assets (Wild, Shaw, Chiappetta, 2011). Cash includes the coins and physical composition money. Cash withal includes the checks that are paid by the companys customers. The assets include accounts receivable. Accounts receivable asset represents the meters owed by the creditors. Sometimes companies sell their product on account. This means the company delivers their products to the customers. In turn, the customers promise to pay their debts after several days or months. The debt amount is recorded as accounts receivable in the companys books of accounts. The inventory represents items that are being interchange in the companys stores. The inventory also includes unused office supplies, unused cleaning supplies, and another(prenominal) unused items that are owned by the company. The twist...The debt amount is recorded as accounts receivable in the companys books of accounts. The inventory represents items that are being sold in the companys stores. The inventory also include s unused office supplies, unused cleaning supplies, and other unused items that are owned by the company. The building account is another company asset. Since the company owns the building, the building is included in the assets account. The office equipment is part of the companys asset account. The office equipment includes the computers, typewriters, calculators, and adding machines. The company has several(prenominal) liabilities to pay (Wild, Shaw, Chiappetta, 2011). The liabilities represent what the company owes its creditors. Similarly, the suppliers may offer the company credit terms when the company buys goods from its suppliers. In exchange for purchased items, the company promises to pay its debts in a few days or months. When this occurs, the company records an accounts payable amount. Further, when company is required to sign a note promising that they will pay the debt within a few days or months, the company records a notes payable amount in its books of accounts. When the company applies or a ten year bank loan, the company records a long term loan amount.