Assessed Discussion Questions

Assessed Discussion Questions - Assessed Discussion...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Assessed Discussion Question: Financial Statements Kevin L. Jackson ACC/561 December 15, 2010 Edward Hastings 1. In what ways do the elements of the financial statements interact with one another? The financial statement of a company describes the financial health of a company at a point in time. The ways the elements of the financial statements interact with one another, is revenue and expenses. Revenue is defined as the total amount of money a company earns from the sale of a product or service. Where the expenses, is the total amount incurs from doing business as a company. Multi-step income statements have some of the following subtotals: gross profit (gross margin), operating income, and income before taxes. Along with revenue and expenses are current and non-current assets no a balance sheet. Some examples of current assets include cash, inventories, and prepaid expenses. Non-current assets include property, plant, and equipment. Liabilities are divided into current and long-term liabilities including accounts payable and long-
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 07/13/2011 for the course STR 581 taught by Professor Roberts during the Spring '11 term at Art Institutes Intl. Minnesota.

Ask a homework question - tutors are online