OMM 622 Week 2 Assignment 2.docx

Discuss the importance of the information found on

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discuss the importance of the information found on Ford Motor Company’s balance sheet in determining the organization’s position across its own history, the industry, or entire business sector. The Role of a Balance Sheet Before a proper analysis can take place, one must first ensure he or she has a full understanding of the role balance sheets play in an organizational setting. Business specialists, a part of BiggsKofford Certified Public Accountants Firm (2018) explain, “The main purpose of preparing a balance sheet is to disclose the financial position of a business enterprise at a given date.” While it is true that they are or can be formulated to report information as of ANY given date, balance sheets are created most, if not all, of the time at the conclusion of accounting
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3 FORD periods. Additionally, Harold Averkamp (CPA, MBA) explained that, if possible, balance sheets should never be viewed alone. Averkamp (2019) said, “The balance sheet should be read with the other financial statements (income statement, statement of cash flows, and the statement of changes in stockholders' equity) and with the notes to the financial statements.” In other words, company balance sheets display a wealth of financial information; however, complete
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