Financial statements Research Paper Example | Topics and Well Written Essays - 1000 words

Financial statements - Research Paper Example The documents that constitute the financial statements include the balance sheets, income statements, cash flow statements and the statements of shareholders’ equity (Sinha, 2007). There are some aspects of relationship between these financial records. The three financial records are used to show the financial situation of the company. First, a balance sheet is a financial statement that is used to show what a company owns and what it owes to others, in terms of the assets and the liabilities of the company (USEC, 2007). The income statement is used to show the amount of money that the organization made and how much money it spent within a given financial period, which could range from monthly, to quarterly or annually. On the other hand, the cash flow statements serve to indicate the monetary exchanges that an organization has had with the outside world, within a specified duration of time. The similarity in all these financial records is that they serve to indicate the finan cial situation of the organization after its interaction with the other stakeholders, in terms of assets, revenues, liabilities and expenditures (Wahlen, Bradshaw, Baginski & Stickney, 2010). Secondly, the three financial records serve to indicate what the organization has spent to gain the property and finances it owns (USEC, 2007). The three financial records have the expenditure and the revenue components, which measure the gains and the take-away that an organization has experienced in financial terms, within a specified period of time. The balance sheets, income statements and the cash flow statements have a debit side, in which they record the expenditures and the reductions to the assets of the organization in terms of the outgoing money. The costs associated with earning either the revenues or the assets that an organization owns are shown in terms of the costs and expenditures that the organization has incurred within a specified period of time. The bottom line of these fin ancial records is to show how much an organization has made within a period of time, and how much the organization has spent within the same duration, and thus give the overall conclusion regarding whether the transactions that were undertaken by the organization during the specified period either helped to make gains or loss (Sinha, 2007). The final conclusion of the three financial records is that they accumulate all the gainful transactions and records them in terms of the amounts of money they help bring in to the organization, while recording the other transactions that serves to take away money from the organization. The two types of transactions are then summed up, and their totals compared, to determine the implication of the transactions that an organization made throughout the period, whether they are gainful or they constitute a loss. However, there is a different set of relationship between the balance sheets and the cash flow statements on one hand, and the income state ments on the other. This relationship exists in the form of adjustments, where both the balance sheets and the cash flow statement are used to adjust the income statement, through introducing certain financial aspects, which cannot be directly categorized as direct incomes or expenditures (Penner, 2004). The income statement is purely applied to

Evaluating an Argument and bring forth an argument of your own Essay

Evaluating an Argument and bring forth an argument of your own - Essay Example Brent begins his article by describing a scenario where a driver accelerates into high speed in order to get to work early and avoid quarrels with boss. It is good to speed up to meet time deadlines but the risk involved is not worth while there are other easier options such as waking up earlier and driving safely to work. The writer talks about the German case where people drive at speed of over 80 miles per and yet German highways are the safest in the world (Axelrod, and Charles 620). However, Brent should also consider the ease of getting a driving license in the two countries and the also the training involved in the driving schools of the two countries. The USA allows people as young as sixteen years old to drive whereas in Germany one can only obtain a driving license at the age of twenty one years. The maturity between a sixteen years old child and a twenty one years old adult is not comparable. In Germany, one has to attend a driving school for at least three months as oppos ed to one month in the USA and hence the driving skills between the two people are incomparable. The writer argues that nobody would speed up in order to risk their lives and hence there’s no need of imposing the speed limits. However, it is important to understand that speed limits not only protects the driver but also the outside world who maybe more important than the driver. Considering a scenario where people were allowed to drive at their own speed, the rate of accident occurrence would increase and consequently the number of people in hospitals would also increase. An increase in the number of people in hospitals directly increases a cost to the government which is under the pressure of economic battles. Brent Knutson argues that modern vehicles are designed in such a way that they can travel safely at super high speed which i