... creditors, consumers, suppliers, regulatory commission, financial analysts, and trade associations - although the information is also of interest to the company's officers and managers" (Elissetsche, 2005). These accounting reports provide financial information needed to make necessary business decisions, and are available to the public to review. The primary financial report used is called the balance sheet. The balance sheet provides information relating to the assets, liabilities, and owner's equity of the company. Two other financial reports are the Income Statement and Statement of Cash Flow. Financial accounting impacts businesses in many different ways. The income and cash flow statements reflect transactions at a given point in time relating to the business operations being reported. With the information provided in these reports, organizations can answer questions about the company's past financial experience. In addition investors may begin to forecast the future possibilities a company may hold and make necessary operational or ...

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