Accounting mechanics: An example of financial statements

A straightforward example of a financial statement appears below. It highlights:

• the relationship between the income statement and the statement of retained earnings
• the relationship between the statement of retained earnings and the balance sheet (shareholders’ or owners’ equity)
• the balance that exists between the assets, and the total liabilities and shareholders’/owners’ equity (Assets = Liabilities + Shareholders’ Equity)

For a more in-depth look at financial statements, see those provided from Research in Motion’s (RIM’s) 2008 fiscal year.