Melvin Lockhart Ba220 Week-3-Financial Statement2

Running head: FINANCIAL STATEMENT

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Financial Statement Melvin Lockhart Grantham University

Melvin Lockhart BA 220 W3 ASSIGNMENT 1

FINANCIAL STATEMENT Abstract Businesses must find ways to account for losses, damaged goods, and stolen inventory. How a business track these inventory can be accomplished through financial statements and income

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statements. Businesses will only be profitable and successfully if they have an accounting system that is thorough and provides detail information to stockholders, investors, and creditors.

FINANCIAL STATEMENT Financial Statement Financial statements are used in business as formal records of activities within a company. Business uses the following statements along with other reports for different purpose, but all have the same goal and that is to make wise decisions in the future based on reports that have been prepared. Balance sheet also referred as a statement of financial position, reports on a

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company’s assets, liabilities, and ownership equity. Income statement also known as a statement of comprehensive income, statement of revenue, or profit and loss report, which reports on income, expenses, and profits over a given period of time. Statement of cash reports on a company’s cash flow activities, related to operating, investing, and financing activities. Statement of Financial Position also known as the balance sheet represents a financial report of a business on any day. The components are assets which a company owns or controls to derive economic benefits for their use. Assets may be classified as tangible and intangible, inventories balance goods that are held for sale. Tangible assets are physical such as property, plant, and equipment. Intangible assets are without physical attributes such as goodwill, brand recognition, and trademarks along with other items which may differ in companies. Receivables are recoverable amounts from customers upon credit sales. Cash in hand along with short term investments...