Discuss the revenue and expense recognition concepts and why they are essential.

B. Review your SEC 10-K company’s Income Statement, Balance Sheet, Statement of Cash Flows, and Consolidated Statement of Equities. Based on this week’s readings, write a paragraph describing each statement and its purpose.This week: understanding the Journal Entry debit/credit system is essential to understand how business transactions are recorded into the accounting system, how that system processes and summarizes those transactions, and how the summary of those transactions is reported in the form of the financial reports. These financial reports are used by management and external stakeholders to evaluate corporate performance. Understanding the underlying accounting system enables you to read better and interpret the financial statements upon which managerial decisions are made.Provide a summary of the accounting concepts learned through this week’s readings and practice quizzes. Demonstrate your understanding of the week’s concepts. If you need ideas regarding topics to discuss, see the ideas below. The more detailed your write-up documenting your understanding, the higher it will be graded. (See Rubric for details.)Complete the report below as a Word document and submit it in the Assignment Folder for week 1 Homework.Additionally, here are some topics to consider:How do journal entries ensure the basic accounting equation (Assets = Liabilities + Owner’s Equity) stays balanced?What happens to the journal entries when recorded into the accounting system? What do they accomplish?Discuss the revenue and expense recognition concepts and why they are essential.What topic(s) gave you trouble this week (if any)?/What topic(s) do you feel you were able to grasp? Post questions in the homework discussion thread!Comment on the value of the activities you completed this weekThe Self-Graded Assessments (unlimited attempts)The most important aspect of this write-up is to document your understanding of the week’s concepts!Remember all submissions and postings in our class must be in your own words. Deliverables are to be single-spaced with double spacing between paragraphs. These are business reports. Thus proper spelling, grammar, and professional writing are expected. Your report submission serves as your new hire’s eight-week rotation report to your supervisor regarding the knowledge learned for this week’s material related to accounting and financial reporting.