Financial Statements and Analysis Students Name Institution Course Date Explain the impact of accounting transactions in financial statements Both accounting transactions and financial statements provide information about the general health of an organization. Accounting transactions are the daily entries that are made in book-keeping that is; they provide short-term details about an organization whereas financial statements are prepared over time from the accounting transactions and they provide long-term information about an organization. The accounting transactions are typically fed into the accounting equation to try and balance the assets and liabilities of an organization and to determine the profit and losses of the organization. For the profit and loss statement it accounts for the and debt to equity are some of the elements calculated here. Liquidity measures how well an organization can meet its expenses; current ratio and interest coverage are some of the elements calculated here (Subramanyam 2009). The financial analysis serves many uses to an organization. It measures how well an organization is performing through the financial statements. It can be used by the organization to plan and improve its future performance. It a tool that is used by investors when they want to invest in an organization (Subramanyam 2009). References Scott W. R. (2015). Financial accounting theory (Vol. 2 No. 0 p. 0). Prentice Hall. Subramanyam K. R. & Wild J. J. (2009). Financial statement analysis. McGraw-Hill. [...]
Write a 500 - 750 word paper that addresses the following topic: ------------------------------------------ Explain the impact of accounting transactions in financial statements. Describe the elements and purpose of each financial statement. Discuss the components and use of financial analysis.-----------------------Your paper must be formatted according to APA 6th edition guidelines, and you need to use at least one external reference.