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Running Head: FINANCIAL STATEMENTSFinancial statementsStudents name:Institution-affiliated:Professors name:Date:1FINANCIAL STATEMENTS2Financial statementsExplain the impact of accounting transactions in financial statements.Financial statements are influenced by various aspects of accounting transactions.Organizations net worth is determined by the expenses and income transactions found in thefinancial statements. The transactions that are recorded whether expenses or revenues willshow the companys balance sheet hence showing the companys financial position.Further the financial position of the company helps in company valuation as the net worthof a company is identified by its financial position. The transactions from the accounts areused in identifying those assets owned by an organization increasing its net worth (Gitman,Juchau & Flanagan, 2015). The assets include the land, buildings, as well as the machinerythat the company owns. If the need be, the assets can easily be liquidated so as to increasethe cash flow for the organization.There are income statements that come from transaction accounts. The incomestatement reveals how the revenu ...


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