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The Annual Reports And Financial Decisions


  • Maria Berheci

    () (Alexandru Ioan Cuza University of Iasi)


Although one may say that the components of financial statements maybe considered autonomous and independent elements, the whole accountingprocessing procedure ends with a set of financial statements that are closelyinterconnected from the information viewpoint. Therefore, the earnings are shown inthe balance sheet, by themselves, however their stages are thoroughly described in theincome statement. If we consider a company's cash account, it interconnects thebalance sheet and the cash flow statements. The balance determines the amounts ofavailable cash and their changes in time, however it does not account for the causesof these variations. The latter are actually the object of the cash flow statement. Alsoregarding the company's earnings, their main manifestations may be found in thebalance sheet – accounting earnings and economic earnings – however an elaboratedescription, starting with the net earnings and going to the economic earnings, is tobe found separately, as an equity capital statement. Our paper dwells on theinterdependence of the components of financial statements and on its influence onfinancial decisions.

Suggested Citation

  • Maria Berheci, 2008. "The Annual Reports And Financial Decisions," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(10), pages 1-17.
  • Handle: RePEc:alu:journl:v:1:y:2008:i:10:p:17

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    References listed on IDEAS

    1. Alicja Jaruga & Ewa Walinska & Andrzej Baniewicz, 1996. "The relationship between accounting and taxation in Poland," European Accounting Review, Taylor & Francis Journals, vol. 5(1), pages 883-897.
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    Cited by:

    1. MIRON Vasile Cristian Ioachim & BURJA Vasile & FOCSAN Eleonora Ionela, 2015. "Content Of Financial Statements And Their Informative Valences For Stakeholders," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 0, pages 255-261, July.

    More about this item


    financial statements; balance sheet; income statement; cash flow statement; decision.;

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation


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