99.8k views
4 votes
Reporting the financial condition of a business at a point in time and reporting the changes in the financial condition of a business over a period of time are the two major objectives of_____________.

User Joscelyn
by
5.5k points

2 Answers

4 votes

Answer:The chief accounting officer

Step-by-step explanation:

The chief accounting officer of a business organizations is charged with the responsibility of preparing the financial statements of the business which shows the financial position of the business for the period under review. The financial statements prepared by the accountant to show the financial position of the business could be in the following forms

Income statement : The income statement is the account prepared in order to show the financial performance of the business in the period under review. The income statement shows the ultimate result of the business efforts for the accounting period by indicating the net profit or loss made by the business in the accounting period.

Balance sheet : This is prepared to present a true and fair view of the financial position of the business at a given date. It a statement which shows the debit and credit balances of assets and liabilities of the business in the accounting period. It is prepared from the balances of the account that remains open on the books after the preparation of the trading profit and loss account or income statement of the business.

Cash Flow statement : This is a statement prepared in order to show the flow of cash into and out of the business within the accounting period. Cash is the most important current asset for the operation of a business and it should be readily available to carry out all the activities of the business. It is needed in order to ensure the solvency of the business.

Statement of owners Equity : This is a statement prepared in order to show the shareholders equity in the business. It includes the shares issued out to the investors, dividend paid by the business to shareholders, the retained earnings, the business net income in the period under review.

User Zuber
by
4.8k points
1 vote

Answer: Financial Accounting/Financial Statement

Explanation: Financial accounting/statement is the record keeping procedure of an organisations activity. It includes the record keeping of an organisations daily, monthly and yearly activity and the production of a report to show how the organisations activity have been kept.

This has to do with how profitable an organisation is in a month, a year and over a specified period of time.

The main objectives of a financial accounting/ statement is to report the financial condition of a business at a point in time and to report the changes in the financial condition of a business is over a period of time.

This will help the organisation in their decision making process.

User Leafonsword
by
4.9k points