Phase 1 Discussion Board 2
Colorado Technical University Online
August 20, 2014
Financial Statements and Analysis
The four main financial statements that are utilized on financial statements analysis contain balance sheets, statements of financial positions, the income statements, and statement of operations, statement of change in shareholders equity, and the statements of cash flow (CTUO, 2014).
The one I choose to discuss is the balance sheets, which is a vital part of the financial statement utilized via accountants and owner businesses. The balance sheet will present business financial positions at the end of a stated date. A few describes the balance sheet like a photograph of a business financial positions at a point, moment, and instant in time. The major element in the balance sheet contains assets that the business owns, liabilities involve the obligations of a business meaning the amounts that’s outstanding to creditor for prior transactions and would normally contain the word payable in the account titles, and lastly is owner's or stockholders equity alongside liabilities could be considered a resource of the business asset and its at times called the book value of a business, since the stockholders equity would be equivalent to the report asset amount minus the report liability amount (Averkamp, Harold, 2014)
The main users of the balance sheet statement involve investor, creditor, and regulatory agency normally will concentrate their analysis of financial statement on the business as a totality and because they can’t ask for a special purpose report the external users have to depend on the all-purpose financial statement that businesses distribute. The users will use these information for making complicated decisions like which employee they would discharge and whether to increase operation.
Generally accepted accounting principle (GAAP) can be called the international...