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Deshonna Henry Week 2 -Questions Accounting 561 May 24, 2010 In what shipway do the elements of the four pecuniary directions interact with one another(prenominal)? The dimension flat solid is a snap shot of businesses records and proceedings at a certain point in time. The proportionateness sheet has three main parts Assets, Liabilities, and Equity. The Equity branch is made up of the value of outstanding stocks, dividends, retained all toldowance balance as of the make income loss balance and net income loss earned since balance was documented. The statement of Cash Flows takes nurture from the other two statements and give a clear follow that can help with budgets and decision making. All statements should tie the interchange flow amounts back to expenses, purchases, loans and other dividend values. The four financial statements (balance sheet, income statement, statement of equity, and property flow statement) are linked: 1. Net income from the income statement flows to the statement of equity 2. Flows to the balance sheet under the equity portion 3. Net income starts out the capital flow statement 4. so cash from operations by taking the cash base changes in the balance sheet 5.

Ending balance on the cash flow statement goes back over to the balance sheet How business leader changing one of the financial statements affect the other financial statements? balance wheel Sheet to balance, Assets = Liabilities + Equity…..the method to processes on a balance sheet. Income statements represent changes in equity that happens from one balance sheet to the next, that cover a period of time. 1. Net asset amounts on the left (debit) side 2. Net liability and equity amounts on the right (credit) side If any number is not flop document it can change the whole balance of the statement, all parts of the financial statements work together to create a financial document. All entry will change the financial statements. Why is it essential to understand the relationship between the... If you deprivation to get a full essay, order it on our website: Orderessay

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