Melissa - Week 2 Assignment - Financial Statements

Melissa - Week 2 Assignment - Financial Statements -...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Financial Statements 1 Financial Statements Melissa Krol ACC - 220 February 5, 2010 Instructor: Milton Robinson Axia College of University of Phoenix
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Financial Statements 2 Financial Statements Financial statements are tools companies and financial institutions use to forecast how well a company is doing or will do in the future. These financial statements can also be used by managers and supervisors as decision-making tools. I will describe four of the financial statements and how they are used. The balance sheet reports assets, which are the resources owned by a business, and the claims to those assets at a specific point in time. The claims are subdivided into two categories, the claims of the creditors, which are the liabilities, and the claims of the owners, which is stockholder’s equity or owner’s equity. Creditors use the balance sheet to decide if they will be repaid. Managers use the balance sheet to decide if inventory is sufficient to support future sales or if there is enough cash on hand for immediate cash needs. Managers may also use the balance
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/06/2010 for the course ACC 220 acc-220 taught by Professor Unknown during the Spring '10 term at University of Phoenix.

Page1 / 4

Melissa - Week 2 Assignment - Financial Statements -...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online