Week 6 DQ 1 - The balance sheet lists assets, liabilities,...

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The balance sheet lists assets, liabilities, and equity/capital of a business for a specific date. This statement is used to determine the company’s financial position. The gross profit by departments details each department’s year-to-date gross profit. This is a custom report for one of the sample companies and is used to determine the cost effectiveness of a department’s activities and evaluate profitability. The income statement summarizes revenues and expenses a company accrues over a period of time. This statement is used to determine how well sales are going, if expenses need to be cut, and if the company has made a profit. This statement can also be used as a budgeting tool and to determine what time of the year a company has a slow period. The statement of cash flow summarizes the effects of the operating, investing, and financing activities of a company on cash for a period of time. This statement is used to determine were cash is coming from and how it is being spent. The statement of retained earnings shows beginning and ending retained earnings amounts, adjustments
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