Post 1
When starting a business as an entrepreneur, it is essential to understand it comprises of four major components that are cash, property, contract, and people. The people manage all the rest, the cash help an entrepreneur to prepare cash flow statements, property helps in preparation of balance sheet and contract helps in preparation of income statements. The financial statements are, therefore, referred to as formal records that show the financial position and activities that occur in the business or entity. The balance sheet shows the assets, liabilities and owners’ equity a business has at a given time. The income statement shows the income, expense, and profit made by the business over a given period (Fraser, 2010). The statement offers information about the operation of the enterprise concerning sales and expenses incurred over a period. Cash flow statements show the cash flow activities particularly in investing, financing and operating activities for a given period.
The information retrieved from financial statements is very critical for a business in various ways. First, the financial statements of business help with information that is essential to investors, creditors, management, and analyst in evaluating how the business is performing thus guiding in the making of major decisions. Moreover, they also assist the top managers of a business enterprise in communication and strategizing by establishing the current and planning for future expectations. The balance sheet reveals the performance of a company after a certain period and what might have caused the changes. The income statements show the revenue, expenses, and profit or loss made during the period. The performance of the business helps them to plan for uncertainty future. Additionally, the cash flow statement shows the cash exchange by business with the outside world over a certain period. In this regard, financial statements are essential documents every business should prepare since their benefits are within and outside the business enterprise.References
Fraser, L. M. (2010). Understanding financial statements. Pearson.
Post 2
To justiy my voiting choice, I chose that answer that the expemses would be understated. Per our required readinf on p 127 it states "If a business had not recoded the adjsting entries for depreciation on the merchandise that the plant assets would have been overstated, and expenses would have been understated. " (Miller-Noble, Mattison, Matsumura 2016).
As per the question, If I was to exlain to Jane in my own words what the purpose of financial statememt, and how they togerther over time. I would say something along the lines of:
To be very general, I would advise Jane, that the financial statements is purposed to provide realt ime feedback, regarding transactions either pending or finalized. I would also let her know that that the Financial statements will give her a clear picture of the stability or even danger that the business may be f ...
DEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUM
Post 1When starting a business as an entrepreneur, it is essenti.docx
1. Post 1
When starting a business as an entrepreneur, it is essential to
understand it comprises of four major components that are cash,
property, contract, and people. The people manage all the rest,
the cash help an entrepreneur to prepare cash flow statements,
property helps in preparation of balance sheet and contract
helps in preparation of income statements. The financial
statements are, therefore, referred to as formal records that
show the financial position and activities that occur in the
business or entity. The balance sheet shows the assets,
liabilities and owners’ equity a business has at a given time.
The income statement shows the income, expense, and profit
made by the business over a given period (Fraser, 2010). The
statement offers information about the operation of the
enterprise concerning sales and expenses incurred over a period.
Cash flow statements show the cash flow activities particularly
in investing, financing and operating activities for a given
period.
The information retrieved from financial statements is very
critical for a business in various ways. First, the financial
statements of business help with information that is essential to
investors, creditors, management, and analyst in evaluating how
the business is performing thus guiding in the making of major
decisions. Moreover, they also assist the top managers of a
business enterprise in communication and strategizing by
establishing the current and planning for future expectations.
The balance sheet reveals the performance of a company after a
certain period and what might have caused the changes. The
income statements show the revenue, expenses, and profit or
loss made during the period. The performance of the business
helps them to plan for uncertainty future. Additionally, the cash
flow statement shows the cash exchange by business with the
outside world over a certain period. In this regard, financial
statements are essential documents every business should
2. prepare since their benefits are within and outside the business
enterprise.References
Fraser, L. M. (2010). Understanding financial
statements. Pearson.
Post 2
To justiy my voiting choice, I chose that answer that the
expemses would be understated. Per our required readinf on p
127 it states "If a business had not recoded the adjsting entries
for depreciation on the merchandise that the plant assets would
have been overstated, and expenses would have been
understated. " (Miller-Noble, Mattison, Matsumura 2016).
As per the question, If I was to exlain to Jane in my own words
what the purpose of financial statememt, and how they togerther
over time. I would say something along the lines of:
To be very general, I would advise Jane, that the financial
statements is purposed to provide realt ime feedback, regarding
transactions either pending or finalized. I would also let her
know that that the Financial statements will give her a clear
picture of the stability or even danger that the business may be
facing financially. This will allow her to make financially sound
decisions at it results to future transactions.
I would further tell her, that the financial statememt would be
important as it results to her, is she was planning to expand her
brand, or even is she was going to banks to apply for loans,
credit lines, etc.
Over time, this all work together by ensuring that the business
is operating at it's optimal financial health. Over time, the
financial statements will work together, in showing her the
direction that the business is going in. She can use the Financial
statements as a guide to decision, applications,etc. As per the
assignment requirement, this is how I would explain in my own
words, while utilizing basic principles from the required
reading/video.
