List the four financial statements and explain each one. What does each statement tell us?

Week 2

List the four financial statements and explain each one. What does each statement tell us? Provide an example of each statement using the corporation you researched in Week 1. Next, explain the connections between the financial statements.

Must be substantial.

FYI “Course Objectives”

Accounts receivable (AR) account for a significant amount of sales in business-to-business (B2B) transactions. Most of the time companies grant their customers 30 days to pay for the goods after they receive them. A credit manager will process requests for new accounts and monitor existing accounts. To open a new business account is much like opening a new individual account. Credit managers check the credit history and the references and if there is nothing derogatory, they grant a low amount of credit until the company proves worthy. In business, sometimes even with the best efforts to weed out credit risks, bad debts still happen. When a business cannot or does not pay as agreed, the company has to write off the bad debt. Most companies are required by generally accepted accounting principles to set up an allowance for doubtful accounts before they go bad because accounting is conservative and tries to prepare for losses in advance.

At the completion of the course, students can:

Summarize and discuss nature and scope of accounting including measuring and reporting financial information fully and fairly. This includes a detailed discussion of accruals, accounting principles/regulations, and ethics.

Analyze and present a comparison of concepts and techniques of financing and investing activities including the time value of money.

Evaluate the financial statements of a corporation, including computation of key ratios.

Students develop a fundamental understanding of financial accounting, and briefly review economics, finance, and statistics. Topics include accounting information, financial reporting requirements, financial statement analysis including ratios, business structures, the time value of money, forecasting, and statistical analysis, as well as the economic topics of supply and demand, pricing, and market structures.

RELATED PROGRAM OBJECTIVES

Students are able to evaluate an organization’s financial position through financial statement analysis and/or forecasting

Students are able to apply selected methods of quantitative analysis to enhance business decisions

Students are able to compare economic environments and markets and their impact on business

Students demonstrate professional communication skills in writing through organizing, thinking critically, and communicating ideas and information in documents and presentations

RELATED STUDENT LEARNING OUTCOMES

At the completion of the course, students are able to:

1.Demonstrate comprehensive professional knowledge of financial statement analysis

2.Demonstrate comprehensive professional knowledge of financial forecasting

3.Demonstrate professional knowledge of economic environments

4.Demonstrate comprehensive professional knowledge of ethical responsibilities of organizations

5.Demonstrate comprehensive professional knowledge of quantitative business methods

6.Communicate clearly and logically through written communications for professional delivery

7.Incorporate APA professional writing skills and standards including concise organization, grammar, references, and citations

8.Shows evidence of higher-level thinking skills including application, analysis, making predictions, drawing inferences, cause and effect relationships, comparing and contrasting, evaluation, and synthesis

COURSE OBJECTIVES

At the completion of the course, students are able to:

Summarize and discuss nature and scope of accounting including measuring and reporting financial information fully and fairly. This includes a detailed discussion of accruals, accounting principles/regulations, and ethics.

Analyze and present a comparison of concepts and techniques of financing and investing activities including the time value of money.

Evaluate the financial statements of a corporation, including computation of key ratios.