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ACCT 212 Week 1 DQ 1 Financial Statements

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Week 1: Introduction to Financial
Statements - Discussion
Financial Statements (graded)
Class,
One key concept for week 1 is that financial statements are comprised of 4 statements: 1) Income Statement, 2)
Balance Sheet, 3) Cash Flows Statement, and 4) Statement of Retained Earnings.
External users of financial statements, such as investors or banks, review the financial statements to perform
analysis on the company. For example, to determine if s/he wants to buy the stock of a company, the investor
may review how much profit the company has generated during the past two years. Or, to determine if a bank
should provide a loan to the company, the loan officer may review the company's cash balance from the
previous two years.
Which financial statement do you believe provides the best information to determine if a company is
performing well financially and/or is financially stable? Why?
Responses
Response Author Date/Time

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RE:
Financial
Statements
Dimitra Arrieta
9/2/2012 10:20:56 PM
Modified:9/2/2012 10:21 PM
Financial statement
From Wikipedia, the free encyclopedia
Jump to: navigation, search
Historical financial statement
A financial statement (or financial report) is a formal record of the financial
activities of a business, person, or other entity. In British English—including United
Kingdom company law—a financial statement is often referred to as an account,
although the term financial statement is also used, particularly by accountants.
For a business enterprise, all the relevant financial information, presented in a
structured manner and in a form easy to understand, are called the financial
statements. They typically include four basic financial statements, accompanied by a
management discussion and analysis:
[1]
1. Statement of Financial Position: also referred to as a balance sheet, reports
on a company's assets, liabilities, and ownership equity at a given point in
time.
2. Statement of Comprehensive Income: also referred to as Profit and Loss
statement (or a "P&L"), reports on a company's income, expenses, and profits
over a period of time. A Profit & Loss statement provides information on the
operation of the enterprise. These include sale and the various expenses
incurred during the processing state.
3. Statement of Changes in Equity: explains the changes of the company's
equity throughout the reporting period
4. Statement of cash flows: reports on a company's cash flow activities,
particularly its operating, investing and financing activities.
For large corporations, these statements are often complex and may include an

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Top of Form Week 1: Introduction to Financial Statements - Discussion Financial Statements (graded) Class, One key concept for week 1 is that financial statements are comprised of 4 statements: 1) Income Statement, 2) Balance Sheet, 3) Cash Flows Statement, and 4) Statement of Retained Earnings. ? External users of financial statements, such as investors or banks, review the financial statements to perform analysis on the company. ?For example, to determine if s/he wants to buy the stock of a company, the investor may review how much profit the company has generated during the past two years. ?Or, to determine if a bank should provide a loan to the company, the loan officer may review the company's cash balance from the previous two years. ? Which financial statement do you believe provides the best information to determine if a company is performing well financially and/or is financially stable? ?Why? Responses Response Author Date/Time RE: Financial Statements Dimitra Arrieta 9/2/2012 10:20:56 PM Modified:9/2/2012 10:21 PM Financial statement From Wikipedia, the free encyclopedia Jump to: navigation, search Historical financial statement A financial statement (or financial report) is a formal record of the financial activities of a business, person, or other entity. In British English-including United Kingdom company law-a financial statement is often referred to as an account, although the term financial statement is also used, particularly by accoun ...
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