Melissa GrimmAssign1 - Melissa Grimm ACC/220 Companies use...

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Melissa Grimm ACC/220 4/3/11 Companies use these statements to make future decisions because they need to know how much money needs or will be spent next year. These statements are also called financial guidelines for next year. One of the statements that the company looks at for next year’s expense is the balance sheet. The statement shows the reports of all the assets the company owns, the liabilities and stockholders’ equity on a specific date. The liabilities of the business are debts and obligations. These liabilities represent the claims of creditors on what the business owns which are their assets. The stockholders’ equity is the claim on the assets of the company. So with showing all of these statements on the balance sheet it will help the company prepare for next year and make cuts if they need to. The next statement that the companies look at to determine what they need for next year is the income statement. This statement shows the company how much they did in revenues and how much the expenses were in a period of time. The companies usually print
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