Chapter 4, Problem 4.1TIATC

To determine

1)

Financial Statements are financial records of the entities transactions for a given reporting period and indicate the financial health of an entity. They comprise of:

1. Income Statements,

2. Balance Sheets and,

3. Cash flow statements.

Income Statements record the results of the company’s operations during a particular reporting period and provide information about the sources of funds and expenses of an entity.

Content reported by the Income Statement and Profit or Loss for the Year Ending 31 December, 2015

To determine

2):

Accounts in Income Statement

These are revenue accounts that are closed every year by posting the balances to the profit and loss account. No Balance is carried forward for these accounts. They represent amounts pertaining to the current year only.

Examples of the Accounts in Hyatt corporations Income statement.

To determine

3)

Financial statements are financial records of the entities transactions for a given reporting period and indicate the financial health of an entity. They comprise of:

1. Income Statements,

2. Balance Sheets and,

3. Cash flow statements.

Balance Sheets list the closing balances of assets and liabilities after giving effect to the operations for a reporting period. Assets and liabilities are grouped together based on their nature and life.

Content reported by the Balance Sheet to investors and weather it is a classified or unclassified balance sheet.