How Financial Reports are Prepared from Worksheets (Statistics Project Sample)

Worksheet
Name
Institution
Benefits of the worksheet
By using a worksheet, all the accounts, their adjustments and balances are listed down. By doing this, creating financial statements from them becomes very easy and very errors are reduced (Ormiston and Fraser, 2013). Normally, when investors and other stakeholders of the company want to know the financial progress of a firm, they request to see the financial statements. When worksheets are drafted, it is very easy to make an accurate financial statement that does not have errors caused by account imbalances. Worksheets also enable for t-accounts to be easily transferred to a trial balance that is adjusted very easy. In most firms, accounting worksheets are prepared for the purposes within the organization. Managers use the worksheets to plan the financial activities in the firm. These worksheets are normally flexible and managers can adjust them to determine the effect they would have on the financial statements.
How financial reports are prepared from worksheets
When entries are made and adjusted in the worksheet, the financial reports are created in an order that begins with the income statement, a retained earnings statement, a balance sheet and a statement of the cash flow (Ormiston and Fraser, 2013). The income statement is prepared by taking the ledger accounts of the revenue, expenses and capital gains or losses from the adjusted worksheet. The retained earnings statem...