Financial Statements are the standard means through which organizations report

Financial statements are the standard means through

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of changes in net assets, and statement of cash flows. Financial Statements are the standard means through which organizations report financial performance information. Per Generally Accepted Accounting Principles (GAAP), companies are responsible for providing reports on their cash flows, profit-making operations and overall financial conditions. There are four major financial statements required under GAAP: (1) the Income Statement, (2) the Balance Sheet, (3) the Statement of Cash Flows and (4) the Statement of Changes in Net Assets. In Week 4 we will examine each of these statements and how they support organizational analysis via development of financial ratio, horizontal, and vertical analysis. The sites below provide a good general overview of the basic financial statements. Investopedia Financial Statements - Introduction: - guide/cfa-level-1/financial-statements/default.asp Beginners' Guide to Financial Statements : Balance Sheet: The balance sheet shows the organization’s financial positions at a specific point in time, typically at the end of an accounting period. The balance sheet represents the organization’s assets, liabilities, and net assets (or shareholders’ equity in for-profit organizations) and their relationships, which are reflected in the following accounting equation:
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Assets = Liabilities + Net assets (or Owners Equity) Statement of Operations: The statement of operations, called the income statement in a for-profit organization, summarizes the organization’s net revenues, expense, and excess of net revenues over expenses, or income before taxes in a for-profit organization, over a period of time. The relationship of the statement of operations to the balance sheet can be best expressed by the expanded accounting equation:
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  • Spring '14
  • eaton
  • Balance Sheet, Financial Analysis and Management Reporting, use of a common set of financial statements

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