The 4 financial statements in a brief description

 

 

Describe the 4 financial statements in a brief description, 2 to 3 sentences. Then you will need to identify in what order the financial statements are prepared and why this order is necessary.

 

Sample Solution

The 4 financial statements in a brief description

Preparing a financial statement is the last step in the accounting cycle before the cycle starts over in a new period. There are four financial statements: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders` equity. Financial statement are compiled in a specific order because information from one statement carries over to the next statement. They build on one another. The trial balance is the first step in the process, followed by the adjusted trial balance, the income statement, the balance sheet and the statement of owner`s equity.

en possible because of including interdisciplinary team member in decision making and product development stages. So now they can bring up the issues on to the table long before launching any product or service. Having a R&D person, marketing and manufacturing person sitting on the same table and brain storming for a unified goal or product will close the communication gap which uses to exist before when every team members used to work individually on their tasks without hearing the input from the person of different skill expertise. The design problems needed to be approach in a systemic ways, ones cannot tackle the problems or can came up with best possible solution if the project is not started in a systemic way. For designing a new product there is a systemic approach in which you start with choosing a team, choosing a project management method, development process, knowing the main problem of your project which you have to solve, from those problems you have to extract the requirement, needs or constraints depending upon the external governing factors. Lean startup product development combine with agile has to be adopted for startup companies. Once you know the domain of your problem and constraints then you start looking for benchmark, patents so you can create the concepts and once you have selected enough concepts within your team then you need to evaluate them using the previous available information. Even for concept synthesis there is a systematic approach which led you to the best optimal solution for the later stages of prototyping. And technologies now a days such as rapid prototyping has changed the way developers work these days. It has shorten the time to launch the product to the market with low cost and high quality.

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