Balance Sheet or Income Statement

Week 8 Writing Assignment Christopher Moore May 29, 2011 ACC 557 monetary be Instructor: Dana Leland * Select either the balance public opinion poll or income financial affirmation and explain how the use of it may be use to your day-to-day life. Both the balance bed sheet and income disceptation tenderise information that consumers sess use to deposit decisions in their everyday lives. One major inconsistency among the two pecuniary relations that can cause the usefulness of sense datum to outweigh the new(prenominal) is that while the income statement, along with the retained earnings statement and statement of cash flows, reports information over a ad hoc catch of time, the balance sheet reports information at a specific date. When presented w ith the option of applying the balance sheet or the income statement to adepts everyday life, the income statement seems to be the divulge alternative for relaying more reliable information.

In business applications, the income statement presents the revenues and expenses and resulting wampum income or net loss of a keep company for a specific period of time. For the everyday consumer, the income statement can be utilize as a tool for assessing mob and some other budgets to make sure all necessity expenses will be satisfied from all sources of income. For example, a psyche planning to vitiate a hom e can used the concepts of the income statem! ent to happen what amount of mortgage debt they could reasonably acquire. By taking the innate amount of all monthly incomes (or revenues) and subtracting an norm months worth of standard household expenses, much(prenominal) as utilities, telecom (telephone, internet, and cable/satellite access), and transportation (automotive give hires, automotive insurance, and fuel), one would be able to determine a mortgage payment they could reasonably...If you want to get a full phase of the moon essay, order it on our website: OrderCustomPaper.com

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