ACC 230 - hw 2 - Aaron New Chapter 2 Homework 2 June 2,...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Aaron New Chapter 2 – Homework 2 June 2, 2010 Q2) What is the major purpose of: a) A balance sheet – It reports the financial position a company is currently in. It includes what the company owns (assets), owes (liabilities) and the difference between what are owns and owes (owners’ equity). b) An income statement – It represents the accountant’s best effort at measuring the economic performance of a company. It reflects expenses and revenue over that fiscal period. c) A statement of cash flow – It records the proceeds from three main categories, namely, operating, investing, and financing. Q3) It depends. I will still be looking at the company’s financial statements nonetheless. I would research the company and look into what their future predictions might be as well. Also, looking at their financial statement enables me to have a rough gauge of the company’s financial situation and is important to most investors. Q11) It is very important for me as it gives me an idea on how the financial reports are being
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

ACC 230 - hw 2 - Aaron New Chapter 2 Homework 2 June 2,...

This preview shows document pages 1 - 2. Sign up to view the full document.

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