FINANCIAL ACCOUNTING INFORMATION

A Term Paper
Presented to
MS. RAIFAH A. SARIP
Department of Liberal Arts
Ranao Council Al-Khwarizmi International College Foundation
Marawi City

In Partial Fulfilment
Of the Requirements for the Course
English 12-R (Writing in the Discipline)
2nd Trimester, 2018-2019

by

Sittie Sumayah D. Abubacar

Sittie Asiyah D. Abubacar

March 2019
 FINANCIAL ACCOUNTING INFORMATION

Thesis Statement:

The financial accounting main purpose is to accurately provide information about a

firm’s performance to internal and external parties of the firm, such as owners, investors and

many others in the form of financial reports or financial statements which are the balance sheet,

income statement, statement if changes in owner’s equity and the statement of cash flows.

Introduction:

Financial statements are the summary of the operating, financing and investing activities

of a business. It shall provide information useful to both investor and creditor to make credit,

investment and the other business decision. And with this usefulness investors and creditors can

foresee, compare, and evaluate the amount and ambiguity of potential cash flows. In other words,

financial statements provide information that is needed to assess a company’s future earnings

and therefore the cash flows expected to result from these income.

I. What is Financial Accounting Information

II. Definition of Financial Statement

A. Objectives of Financial Statement

B. Users of Financial Information

III. Components of Financial Statement

A. Statement of Income or Income Statement

B. Statement of Financial Position or Balance Sheet

C. Statement of Changes in Equity

D. Statement of Cash Flows

Conclusion:
 The ultimate purpose of these statements is to provide information about the business to

its owner and other interested parties. First, is that it starts with the normal operating cycle of

business up to its reporting, which is the preparation of the four statements. Therefore, these

report influences the decision of the owners, investors and other parties, whether to continue

investing money to the business. For instance, instead of investing they might held or back out to

invest because of the information presented in the financial statement.

 INTRODUCTION

In today trends, everyone tends to run their own business. However, some entrepreneurs

have lack the knowledge of understanding their financial statements. Thus, analysing financial

statements is vital knowledge for those who are involved with a business.

Therefore, “The success or failure of a business is measured in dollars. And dollars are

recorded and reported using accounting. Accounting is truly the language of business. No matter

what your role may be, if you are involved in business, you can benefit from learning

accounting.”

Fundamentally, financial statements analysis of a company’s performance is the main

purpose of this statement. It is to provide reliable information about its financial position in the

form of financial statements. Basically, it is essential for company’s internal user as well as

external users to make decision. External and internal users including lenders, creditors,

investors, owners and managers have special needs to the information depending on the type of

decision to be made.

Accordingly, the researchers aimed to provide information about financial accounting

information to those accountancy students and others who are in need if information about

financial statement. This study contains information about the four statements prepared at the

end of specified period. Actually, this study will help those who are about to start their business

and those who are already doing business. Therefore, the researchers strive to make this study

complete.

This study’s information is from various sources, such as the university library of

Mindanao State University, and of course the library of AKIC where in this institution the
researchers are currently studying. And they also got these sources from various websites in the

internet. This study is completed with their strong determination and hard work.
CONCLUSION
 REFERENCES

Importance of financial statement. (n.d.). Retreived from:

http://www.yourarticlelibrary.com/accounting/financial-statements/top-4-main-

components-of-financial-statements/667634

External users of Financial statements (n.d.). Retreived from: http://www.wallstreetmojo.com

Types of financial statement. (n.d.). Retreived from: http://www.myaccountingcourse/financial-

statement

Users of Accounting information (n.d.). Retreived from: http://www.courses.lumenlearning.com

The income statement. (n.d.). Retreived from: http://www.accounting.basicsforstudents.com

Abrugar, V. (2012). Statement of financial statement. Available: http://www.businesstips.ph

Cabrera, M., Ledesma, E., & Lupisan, M.C. (2010). Fundamentals of accounting. C.M. Recto

avenue,Manila, Philippines: GIC Enterprises & Co., Inc.

Curtis, L., Norton, Gary, A., & Porter. (2013). College Accounting; Introduction to using

Financial Accounting Information. South-Western 5191 Natorp Boulevard Mason, OH

45040 USA. Nalson Education,Ltd.

Haber, J. (2004). Accounting Demystified. New York. AMACOM

Purpose of financial statement. (2010). Retrieved from: http://www.accounting-

simplifies.com/financial/introduction/users-of-accounting-information.html

Valix, C. T., Peralta, J. F., & Valix, C. M. (2015). Financial Accounting. C. M. Recto Manila,

Philippines: GIC Enterprises & Co., Inc.