Week 2 Financial Statements

Week 2 Financial Statements - A companys financial...

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A company’s financial statement is most often referred to as the company’s resume. Understanding each segment of a financial statement is vital. Four known key elements of every financial statement have been identified. These elements are a balance sheet, income statement, statement of retained earnings, and a statement of cash flows. In order for a company to make it in today’s economy or market, they must have a good accounting department behind them that can create and track all of these financial statements. The accounting department will take these statements and interpret the data for the leaders of the company. Companies use several tools such as balance sheets or a statement of financial position to provide a snapshot of a company’s financial condition. A balance sheet is a financial statement that shows a summary of a company’s assets, an individual’s assets, liabilities, and shareholders’ equity at a specific point in time. Assets are items such as cash and cash equivalents, inventories, accounts receivable, prepaid expenses, property, plant, and equipment, investment property, such
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This note was uploaded on 11/22/2011 for the course ACC 220 220 taught by Professor Aliciahubbard during the Spring '10 term at University of Phoenix.

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Week 2 Financial Statements - A companys financial...

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