Triple entry accounting and financial statements Assignment

Triple entry explanation and financial statements - subsidisation ExampleToday many companies often use statements from previous periods or years in severalise to project the likely outcomes of actual finances. This method is not always accurate. Triple-entry accounting is intended to provide predictive accounting that is more accurate than basing results solely on previous outcomes.(Henke)The process of triple-entry accounting is a tangled process. It is believed that these methods may be able to predict the future of the business and, even all toldow, for unforeseen expenditures and happenings. The intention of the triple-entry accounting is to give businesses a clearer view of financial earnings based on an equation that takes into consideration the past, portray and future not just historical data.(Henke)This could be considered a great improvement over current financial statement methodology.Essentially the articulation of the four relevant financial statements simply me ans that the rime in the statements among all the statements provided are in agreement with one another. However, there is a lot that goes along with that simple definition The four statements that need to articulate properly are the balance sheet, income statement, Statement of shareowner Equity, and the Statement of Cash Flow. The balance sheet, is divided into three sections assets, liabilities, and stockholders equity, provides the information concerning the available resources the resources to management and any claims against those resources by present creditors and shareholders. (Cambridge Publications) All the gains and losses are recorded and then transferred to the income sheet as necessary. The Stockholders Equity reflects the all of the financing provided by the companys owners. The stockholders hold a claim on residual recreate which is accrued via, common stock, preferred stock, treasury stock, retained earnings, additional paid capital, any other hive away income or loss. the statement of cash flows provides