Intro Of Finance And Accounting
Running head: Analyzing Financial Statement
Analyzing Financial Statements
Kamisha Harris
MBA 503
June 19, 2008
Maurice Clark
Analyzing Financial Statements
Accounting is a structural system of recording and reporting, and evaluating all financial transactions of one company or organizations. In general, accounting review these financial activities and data through income statements, balance sheets, and statements of cash flow (). The object of this assignment is to provide basic accounting and finance information for small business owners with little to no knowledge of accounting and finance. By endowing the basic concepts of accounting and finance, starting companies will understand the relationships between accounting and finance and apply these concepts to their own businesses. The purpose of financial statements is to give information about the business’ financial potency, presentation and changes in financial position to a range of users in making economic decisions (Financial Statements pg1). Financial statements should be relevant, understandable, and comparable. Reports are intended to show liabilities and equity is directly related to an organization’s financial position. Reported income and expenses are directly related to an organization’s financial performance. We have all heard the phrase “Show me the money!” Well, that’s what financial statements do. They show you where a company’s money came from, where it went, and where it is now.
Financial reports are useful to varieties of users for different reasons; depending who your audience is. The users of financial statements are suppliers, lenders, governments, potential investors and creditors not excluding the public. These financial statements are carried out within different forms of organizations. The primary interests are the sole proprietorship, the partnership, and the...
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