Understanding Primary Financial Statements in Business Administration
Explore the significance of the three primary financial statements - Income Statement, Cash Flow Statement, and Balance Sheet in business administration and management. Gain insights into accounting systems, GAAP principles, and the accounting equation.
Understanding Primary Financial Statements in Business Administration
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Presentation Transcript
Business Administration & Management Mr. Bernstein Financial Statements, pp 409-415 May 20, 2014
Business Administration & ManagementMr. Bernstein 3 Primary Financial Statements Income Statement Cash Flow Statement Ledger Balances Balance Sheet
Business Administration & ManagementMr. Bernstein Accounting Systems Businesses keep score GAAP: Generally Accepted Accounting Principles The Accounting Equation: Assets = Liabilities + Owner’s Equity Assets are anything of value (ie cash, equipment, accounts receivable) Liabilities are anything the business owes Owner’s Equity is the net worth of the business (Assets – Liabilities = Owner’s Equity)
Business Administration & ManagementMr. Bernstein 3 Primary Financial Statements Income Statement reports Profit/Loss Balance Sheet reports Assets & Liabilities Cash Flow Statement reports cash receipts and disbursements
