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Basic Financial Statements Free Essay, Term Paper and Book Report

Introduction In this I will discuss the four basic financial statements and how they are utilized in organizations. Financial statements (or financial reports) are formal records of a business' financial activities. These statements provide an overview of a business' profitability and financial condition in both short and long term. There are four basic financial statements and they are as follows balance sheet, income statement, statement of changes and cash flow statements. The following will be a synopsis of these statements. The balance sheet, also known as the statement of financial position or condition, presents the assets, liabilities, and owners' equity of the company at a specific point in time. The assets are the firm's resources, financial or nonfinancial, such as cash, receivables, inventories, properties, and equipment. The total assets equal (balance) the sources of funding for those resources: liabilities (external borrowings) and equity (owners' contributions and earnings from firm operations). The balance sheet is used by investors, creditors, and other decision ......

Word Count: 1029
Page Count: 4.1  (250 words a page / double spaced)

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