A100+things+we+know+-+3rd+class+meeting+MW[1] - Also, be...

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A100: Things you should know and be able to do before you come to class on Wednesday September 10 2008 Without referring to anything, and with nothing in front of you except a blank piece of paper and a pencil, you should be able to: (1) Name the four financial statements and explain the purpose of each one. . Balance Sheet- presents a picture of the company’s financial condition as of a point in time, listes the company’s assets and their financing courses as of a particular date, usually month end or year end. Income Statement- a measure of operating performance, which indicates whether the company made a profit on its operating activities. Statement of Cash Flows- a record of the cash inflows and outflows associated with the operating, investing, and financing activites of the business. Statement of Retained Earnings- measures the extent to which the business has reinvested its profits and paid dividends. (2) For the balance sheet Name the major sections (e.g., current assets, long-term investments, etc.) of a balance sheet, name the accounts that appear in each section and explain what each account means (e.g., "Cash" is a current assets that tells us how much cash the company has). Also, know how the idea of "liquidity" is used to determine the order in which the accounts are presented in the balance sheet. Current assets
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A100+things+we+know+-+3rd+class+meeting+MW[1] - Also, be...

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