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Business Administration & Management
Mr. Bernstein
Financial Statements, pp 409-415
May 22, 2013
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Business Administration & Management
Mr. Bernstein3 Primary Financial Statements
Income Statement
Ledger Balances
Cash Flow Statement
Balance Sheet
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Business Administration & Management
Mr. Bernstein
Accounting SystemsBusinesses keep score
GAAP: Generally Accepted Accounting PrinciplesThe Accounting Equation: Assets = Liabilities + Owner’s Equity
Assets are anything of value (ie cash, equipment, accounts receivable)
Liabilities are anything the business owesOwner’s Equity is the net worth of the business
(Assets – Liabilities = Owner’s Equity)
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Business Administration & Management
Mr. Bernstein
3 Primary Financial StatementsIncome Statement reports Profit/LossBalance Sheet reports Assets & LiabilitiesCash Flow Statement reports cash receipts and disbursements
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