FINANCIAL INFORMATION 1 Financial Information Ja’Niya Ladson Department of Business and Entrepreneurship BA130OL- Introduction to Business Dr. Wilton Stewart April 25, 2021 Grade Breakdown >Communication: 20.00 points out of 20 points >Analysis: 20.00 points out of 20 points >Application: 18.50 points out of 20 points >Effective Use: 17.50 points out of 20 possible points (error in APA format) >Style: 16.75 points out of 20 possible points. Remarks: • Errors noted with Source entries in reference list. See professor’s comments. • Improper heading levels throughout document. See professor’s comments. FINANCIAL INFORMATION 2 Introduction Understanding the financial information of an organization is essential before making a decision of the company to purchase. Financial information can be extracted from the financial statement of the company. The paper addresses questions about financial statements. How a balance sheet differs from an income statement? The first difference is based on reporting. A balance sheet reports Assets, Liabilities, and Equity while an income statement represents revenue and expenses (Griffin & Mahajan, 2019). The second difference is based on timing. The balance sheet indicates what an entity owns and owes at a particular time unlike the income statement which indicates the total expense and revenue for a time period. Besides, a balance sheet is utilized by entities to identify whether the company has adequate assets to satisfy financial obligations while an income statement is utilized to analyze the performance and to determine whether there exist any financial issues that require adjustment. The term owners’ equity It is the owners' rights to the assets of a company. It is the portion of the value of an entity’s asset that can be claimed by the owners (Fabozzi et al., 2021). It is merely what remains for the owners after deducting all liabilities from the company's assets. It is calculated as TA – TL. Some of the components of owners' equity are retained earnings, treasury stock, and outstanding shares. Difference between FA and TA FA are long-term and tangible assets used in a business that are grouped as PPE. These are the assets that the company does not expect to sell or consume within an accounting period. Some of the fixed assets are buildings, furniture, and equipment that depreciates over time, Commented [WS1]: This should be a level II heading ➔ see article 2.27 on pages 47 – 49 of APA Manual. Commented [WS2]: See prior comment – This is not in Level II heading format Commented [WS3]: See prior comment Commented [WS4]: Acronyms are to be defined on first use in an academic document in accordance with APA standards. FINANCIAL INFORMATION 3 except land. In contrast, total assets are th ...

1. FINANCIAL INFORMATION 1
Financial Information
Ja’Niya Ladson
Department of Business and Entrepreneurship
BA130OL- Introduction to Business
Dr. Wilton Stewart
April 25, 2021
Grade Breakdown
>Communication: 20.00 points out of 20 points
>Analysis: 20.00 points out of 20 points
>Application: 18.50 points out of 20 points
>Effective Use: 17.50 points out of 20 possible points (error in
APA format)

2. >Style: 16.75 points out of 20 possible points.
Remarks:
• Errors noted with Source entries in reference list. See
professor’s comments.
• Improper heading levels throughout document. See
professor’s comments.
FINANCIAL INFORMATION 2
Introduction
Understanding the financial information of an organization is
essential before making a
decision of the company to purchase. Financial information can
be extracted from the financial
statement of the company. The paper addresses questions about
financial statements.
How a balance sheet differs from an income statement?
The first difference is based on reporting. A balance sheet
reports Assets, Liabilities, and
Equity while an income statement represents revenue and
expenses (Griffin & Mahajan, 2019).
The second difference is based on timing. The balance sheet
indicates what an entity owns and

3. owes at a particular time unlike the income statement which
indicates the total expense and
revenue for a time period. Besides, a balance sheet is utilized by
entities to identify whether the
company has adequate assets to satisfy financial obligations
while an income statement is
utilized to analyze the performance and to determine whether
there exist any financial issues that
require adjustment.
The term owners’ equity
It is the owners' rights to the assets of a company. It is the
portion of the value of an
entity’s asset that can be claimed by the owners (Fabozzi et al.,
2021). It is merely what remains
for the owners after deducting all liabilities from the company's
assets. It is calculated as TA –
TL. Some of the components of owners' equity are retained
earnings, treasury stock, and
outstanding shares.
Difference between FA and TA
FA are long-term and tangible assets used in a business that are
grouped as PPE. These

4. are the assets that the company does not expect to sell or
consume within an accounting period.
Some of the fixed assets are buildings, furniture, and equipment
that depreciates over time,
Commented [WS1]: This should be a level II heading ➔
see article 2.27 on pages 47 – 49 of APA Manual.
Commented [WS2]: See prior comment – This is not in
Level II heading format
Commented [WS3]: See prior comment
Commented [WS4]: Acronyms are to be defined on first
use in an academic document in accordance with APA
standards.
FINANCIAL INFORMATION
3
except land. In contrast, total assets are the total sum of assets
owned by an entity. It is the
summation of fixed assets and current assets.
Difference between long-term liabilities and CL
CL are the obligations and debts that need to be repaid within
one year (Fabozzi et al.,
2021). They are given close attention by the management to
ensure that the entity has adequate

5. liquidity from CA to guarantee that the obligations or debts are
met. Some of the CL include
account payables, income tax payables, and interest payables. In
contrast, non-current liabilities
or long-term liabilities are obligations and debt due in a long
time or over one year. These are an
essential part of an entity's long-term financing and are
important in identifying long-term
solvency. Examples of long-term liabilities include mortgage
payable, the bond payable, and
long-term notes payable.
The difference between cash flow and an income statement
The first difference between these two is based on the meaning.
An income statement is a
financial statement that represents the gains, revenue, losses,
and expenses for a specific
accounting period while a cash flow represents the outflows and
inflows of cash for a specific
accounting period.
The second difference is based on the basis; income statement is
founded on an accrual
basis while cash flow is based on the actual payment and receipt
of cash (Griffin & Mahajan,

6. 2019). That is to means that the income statement is based on
the accrual system of accounting,
which considers income and expenses in an accounting period,
while cash flow is based on the
cash system of accounting which incorporates actual outflow
and inflow in a specific accounting
period.
Commented [WS5]: See prior comment
Commented [WS6]: See prior comment
FINANCIAL INFORMATION 4
The other difference is that cash flow entails three activities;
operating, investing, and
financing activities while the income statement considers two
activities; operating and non-
operating activities. Besides, based on objectivity, the income
statement is useful in determining
the profitability of an entity while cash flow is essential in
determining the solvency and liquidity
of an entity.
How to identify a business’ financial strengths and weaknesses
A business's financial strengths and weaknesses can be

7. identified by using various
techniques or tools. One of the ways to identify business
financial strengths and weaknesses is
through the financial SWOT analysis technique (Purba &
Septian, 2019). It is a strategic or
financial analysis technique that determines an entity's financial
strengths, weaknesses, threats,
and opportunities.
The business's financial strengths and weaknesses can also be
identified by calculating or
using the financial ratios of the entity. By calculating the
solvency, efficiency, liquidity, and
profitability ratios the business's financial capabilities and
weaknesses can be identified. The
other way is through comparison. By comparing the company to
its peers or the industry, one can
determine its weaknesses and strengths relative to competitors
in the industry. This can be based
on comparing the business ratios with the industrial averages
and competitor's ratios.
Why should we be concerned with all these financial processes
when we can get an
accounting firm to handle this stuff while we focus on daily
business operations?

8. One of the reasons we should be concerned with the financial
processes instead of hiring
an accounting firm is that it enhances and builds our knowledge
and understanding about the
firms we wish to purchase. It helps us extensively understand
the operations of the firm, the
financials, strengths, and weaknesses. Secondly, hiring an
accounting firm requires a good sum
Commented [WS7]: See prior comment
Commented [WS8]: First use of an acronym must be
defined.
Commented [WS9]: See prior comment
FINANCIAL INFORMATION
5
of money that can be saved or invested in a productive project
when the process is conducted
internally. Thirdly, hiring an accountant firm involves exposure
of confidential information to a
third party which some firms may be unwilling to share.

9. FINANCIAL INFORMATION 6
References
Fabozzi, F. J., Fabozzi, F. A., de Prado, M. L., & Stoyanov, S.
V. (2021). Fundamentals of
Financial Statements. World Scientific Book Chapters, 29-75.
Griffin, P. A., & Mahajan, S. (2019). Financial Statement
Analysis. Finding Alphas: A
Quantitative Approach to Building Trading Strategies, 141-148.
https://doi.org/10.1002/9781119571278.ch19.

10. Purba, J. H. V., & Septian, M. R. (2019). Analysis of Short
Term Financial Performance: A Case
Study of an Energy Service Provider. Journal of Accounting
Research, Organization, and
Economics, 2(2), 113-122.
https://doi.org/10.24815/jaroe.v2i2.14632.
Commented [WS10]: Incorrect entry. See article 10.2 on
page 321 of APA Manual for proper format for Book works.
Further, improper capitalization noted in book title.
Commented [WS11]: Incorrect format for citing chapter
in an edited book with a DOI. See example 38 on page 326
of APA Manual.
Commented [WS12]: Improper capitalization of words in
article title. See articl e 10.1 on pages 316 – 321 of APA
Manual on proper format for title of article that are
published in a journal.
https://doi.org/10.1002/9781119571278.ch19
https://doi.org/10.24815/jaroe.v2i2.14632
Using Financial Information
You and a business partner are considering the purchase of a
firm that has been in business for five years. Your associate
does not have any financial accounting expertise, but recognizes
that financial information is central to every organization.
Recently, this associate, who is not familiar with financial
statements, asks you a series of questions. In your own words
respond to the following questions that are being asked by your
business partner.

11. ·
· How does a balance sheet differ from an income statement?
· What does the term ‘owners’ equity’ mean?
· What is the difference between fixed assets and total assets?
· What is the difference between long-term liabilities and
current liabilities?
· How would you describe the difference between a statement of
cash flow and an income statement?
· What can be used to identify a business’ financial strengths
and weaknesses?
· Why should we be concerned with all these financial processes
when we can get an accounting firm to handle this stuff while
we focus on daily business operations?
This assignment submission must be at least 3-pages, not
including APA cover page or references page.
EXPECTATIONS:
BA 130 OL – Introduction to Business (3cr. hrs.)
Page 1 of 6
This document will outline the Professor’s expectations
required for successful completion of
this course. While you will receive a slightly different
experience in each of your classes at
Voorhees College, based on my style of teaching, there are
some general guidelines I would like
to go over with you so that you will have a consistent
experience throughout this course.

12. Forum Topic Activities
• Etiquette (Netiquette) – I am committed to providing open,
frank, yet civil dialogue in the
forum topic discussions. To achieve this, students should abide
by the following
guidelines:
• Never post, transmit or distribute content that is known to be
illegal
• Avoid harassing, threatening or embarrassing fellow learners
• Avoid language that is: harmful, abusive, racially or ethnically
offensive, vulgar,
or sexually explicit.
• If you provide information/facts in your post that are from
another source, I
encourage you to cite a source. While not necessary, this
practice would make it
easier for those reading your post to locate the source for
personal reference.
PLEASE NOTE: APA format does not have to be used for citing
sources in a
discussion post. Points will not be deducted if the citation is
not in APA format.
• The original discussion post for each specific topic should be

13. a minimum of 250 words
unless a more significant number of words is specified in the
actual forum discussion
instruction. If it is apparent there is no substantive evidence or
content that contributes
to the discussion, regardless of word count, reduced points will
be awarded. Original
discussions posted after midnight Thursday evening will receive
reduced credit.
• Responses post to discussions after midnight Sunday evening
will receive zero credit.
If the number of responses is not specified, a minimum of two,
posted are required.
Further, a response post to a fellow student or the instructor
should be a minimum of
150 words unless more words are specified in the forum
discussion instructions.
• If a student neglects to respond to a professor’s follow -up
posted question(s) or query
for additional information to a student’s forum discussion post,
there will be a reduction
of points in the participation category.
• For maximum credit on participation level for a forum
discussion, the original post and
at least the prescribed number or more response posts must be

14. posted during the week.
Written Assignments and Case Studies
• All written assignments are to be typed, double-spaced, 12 pt.
Times New Roman font,
in APA style. APA style means there must be a cover page on
the assignment. In
addition, the cover page must have the following features:
o A running head title (in the upper left-hand corner). Please
see the example
below:
CASE STUDY 1
o A title for the assignment that is not more than 12 words.
o Student’s name
EXPECTATION (cont.):
BA 130 OL – Introduction to Business (3cr. hrs.)
Page 2 of 2
o Course Title & number (i.e. BA 130 OL – Introduction to
Business)
o Institutional affiliation (i.e., Department of Business &
Entrepreneurship)
o Assignment Date
o Professor’s name (i.e., Wilton R. Stewart, PhD)

15. Please note – the running head title should appear on all
subsequent pages following the
cover page in a submitted written assignment.
• Academic honesty is highly valued. Always submit work that
represents your original
words or ideas. If any words or concepts used in a class posting
or assignment submission
do not represent your original words or ideas, you must cite all
relevant sources in APA
format and make clear the extent to which such sources were
used.
• Most plagiarism issues are unintended. For example, a student
forgets to put quotation
marks around a direct quote or paraphrases research without
adding a reference citation.
The consequences of plagiarism, however, do not decipher
unintended from deliberate
practice. Please have a working knowledge of how to reference
others in your written
work, including knowing the differences between quoting,
paraphrasing, and
synthesizing.
• The APA Manual1 will be used by the professor to cite all
format discrepancies that are
noted in a graded assignment. Twenty percent of your overall
grade on a written

16. assignment will be based on APA format and reference list.
• One must provide a textual citation using the APA author-date
system format and also
provide a reference listing at the end of a written assignment if
you use the ideas or
directly quote other authors. That also includes the definition
of words.
• Using just the web address to cite a source does not provide a
reader all the information
needed. Nevertheless, it is also not proper APA format. APA
format is how you
communicate in writing to cohorts that are human service
professionals.
Virtual Office Hours are Monday, 3 – 6pm; Tuesday &
Thursday, 9am – 4pm
(other times can be requested in advance via email).
Phone number(s): (843) 412-4754
College e-mail address: [email protected]
With respect,
Wilton R. Stewart, PhD
Adjunct Professor,
Voorhees College

17. 1 The specific reference source that will be used for grading
APA format is The APA Manual
(2020). Publication manual of the American psychological
association (7th Ed.). Washington,
D.C: American Psychological Association
EXPECTATIONS:
BA 130 OL – Introduction to Business (3cr. hrs.)
Page 1 of 6
This document will outline the Professor’s expectations
required for successful completion of
this course. While you will receive a slightly different
experience in each of your classes at
Voorhees College, based on my style of teaching, there are
some general guidelines I would like
to go over with you so that you will have a consistent
experience throughout this course.
Forum Topic Activities
• Etiquette (Netiquette) – I am committed to providing open,
frank, yet civil dialogue in the
forum topic discussions. To achieve this, students should abide

18. by the following
guidelines:
• Never post, transmit or distribute content that is known to be
illegal
• Avoid harassing, threatening or embarrassing fellow learners
• Avoid language that is: harmful, abusive, racially or ethnically
offensive, vulgar,
or sexually explicit.
• If you provide information/facts in your post that are from
another source, I
encourage you to cite a source. While not necessary, this
practice would make it
easier for those reading your post to locate the source for
personal reference.
PLEASE NOTE: APA format does not have to be used for citing
sources in a
discussion post. Points will not be deducted if the citation is
not in APA format.
• The original discussion post for each specific topic should be
a minimum of 250 words
unless a more significant number of words is specified in the
actual forum discussion
instruction. If it is apparent there is no substantive evidence or

19. content that contributes
to the discussion, regardless of word count, reduced points will
be awarded. Original
discussions posted after midnight Thursday evening will receive
reduced credit.
• Responses post to discussions after midnight Sunday evening
will receive zero credit.
If the number of responses is not specified, a minimum of two,
posted are required.
Further, a response post to a fellow student or the instructor
should be a minimum of
150 words unless more words are specified in the forum
discussion instructions.
• If a student neglects to respond to a professor’s follow -up
posted question(s) or query
for additional information to a student’s forum discussion post,
there will be a reduction
of points in the participation category.
• For maximum credit on participation level for a forum
discussion, the original post and
at least the prescribed number or more response posts must be
posted during the week.
Written Assignments and Case Studies
• All written assignments are to be typed, double-spaced, 12 pt.
Times New Roman font,

20. in APA style. APA style means there must be a cover page on
the assignment. In
addition, the cover page must have the following features:
o A running head title (in the upper left-hand corner). Please
see the example
below:
CASE STUDY 1
o A title for the assignment that is not more than 12 words.
o Student’s name
EXPECTATION (cont.):
BA 130 OL – Introduction to Business (3cr. hrs.)
Page 2 of 2
o Course Title & number (i.e. BA 130 OL – Introduction to
Business)
o Institutional affiliation (i.e., Department of Business &
Entrepreneurship)
o Assignment Date
o Professor’s name (i.e., Wilton R. Stewart, PhD)
Please note – the running head title should appear on all
subsequent pages following the
cover page in a submitted written assignment.
• Academic honesty is highly valued. Always submit work that

21. represents your original
words or ideas. If any words or concepts used in a class posting
or assignment submission
do not represent your original words or ideas, you must cite all
relevant sources in APA
format and make clear the extent to which such sources were
used.
• Most plagiarism issues are unintended. For example, a student
forgets to put quotation
marks around a direct quote or paraphrases research without
adding a reference citation.
The consequences of plagiarism, however, do not decipher
unintended from deliberate
practice. Please have a working knowledge of how to reference
others in your written
work, including knowing the differences between quoting,
paraphrasing, and
synthesizing.
• The APA Manual1 will be used by the professor to cite all
format discrepancies that are
noted in a graded assignment. Twenty percent of your overall
grade on a written
assignment will be based on APA format and reference list.
• One must provide a textual citation using the APA author-date
system format and also
provide a reference listing at the end of a written assignment if

22. you use the ideas or
directly quote other authors. That also includes the definition
of words.
• Using just the web address to cite a source does not provide a
reader all the information
needed. Nevertheless, it is also not proper APA format. APA
format is how you
communicate in writing to cohorts that are human service
professionals.
Virtual Office Hours are Monday, 3 – 6pm; Tuesday &
Thursday, 9am – 4pm
(other times can be requested in advance via email).
Phone number(s): (843) 412-4754
College e-mail address: [email protected]
With respect,
Wilton R. Stewart, PhD
Adjunct Professor,
Voorhees College
1 The specific reference source that will be used for grading
APA format is The APA Manual
(2020). Publication manual of the American psychological

23. association (7th Ed.). Washington,
D.C: American Psychological Association
Using Financial Information
You and a business partner are considering the purchase of a
firm that has been in business for five years. Your associate
does not have any financial accounting expertise, but recognizes
that financial information is central to every organization.
Recently, this associate, who is not familiar with financial
statements, asks you a series of questions. In your own words
respond to the following questions that are being asked by your
business partner.
·
· How does a balance sheet differ from an income statement?
· What does the term ‘owners’ equity’ mean?
· What is the difference between fixed assets and total assets?
· What is the difference between long-term liabilities and
current liabilities?
· How would you describe the difference between a statement of
cash flow and an income statement?
· What can be used to identify a business’ financial strengths
and weaknesses?
· Why should we be concerned with all these financial processes
when we can get an accounting firm to handle this stuff while
we focus on daily business operations?
This assignment submission must be at least 3-pages, not
including APA cover page or references page.