About This Chapter
Financial Monitoring & Control - Chapter Summary
Enhance your comprehension of financial monitoring and control with help from these entertaining lessons. This chapter examines how financial statements and reports are used to monitor and control various aspects of business. Top instructors make these lessons easy and fun to review. Upon completion, you will be able to:
- Describe the purpose, components and format of an income statement
- Define the statement of retained earnings
- Provide details about the components, format and purpose of the balance sheet
- Discuss the format and purpose of the statement of cash flows
- Detail the process of preparing a basic income statement and statement of retained earnings
- Explain how to prepare a basic balance sheet and statement of cash flows
- List and describe limitations of financial reports
Don't let a busy schedule stop you from studying financial monitoring and control. Lessons in this chapter are available around-the-clock and can be accessed via any computer or mobile device anywhere you can secure an Internet connection. Choose the lessons you wish to view, and visit them as many times as needed to boost your knowledge of this subject. When ready, check your understanding by taking short lesson quizzes and a practice chapter exam.
1. What Is an Income Statement? - Purpose, Components & Format
There are four financial reports that are created during the accounting cycle. These four reports make up what is commonly known as the financial statements. In this lesson, we will focus our attention on the income statement. We will learn what the income statement is, what its role in the financial statements is, and why it is important in accounting.
2. Statement of Retained Earnings: Definition, Formula & Example
Retained earnings are a critical part of the business life cycle. The statement of retained earnings calculates not only the cumulative amount of earnings but also the changes that have affected that amount during the past year.
3. The Balance Sheet: Purpose, Components & Format
There are four financial reports that make up a group known as the financial statements. We will take a walk with one of those reports - the balance sheet - and learn what it is, what items are included on it and what its role in the group is.
4. The Statement of Cash Flows: Purpose, Format & Examples
There are four financial reports that are required in financial statements. In this lesson, you will learn about the fourth and final report - the statement of cash flows. You'll learn what the makeup of the statement is, its purpose, and why it is important to users of the financial statements.
5. Preparing the Basic Income Statement and Statement of Retained Earnings
Preparing financial statements can be tricky. In this lesson, we are going to talk about how to prepare the first two basic financial statements: the income statement and the statement of retained earnings.
6. How to Prepare the Basic Balance Sheet and Statement of Cash Flows
There are four reports that make up the financial statements. In this lesson, we will talk about how to create the balance sheet and the statement of cash flows. You will learn how to format the reports, as well as what information is reported on them.
7. Limitations of Financial Reports
Users rely on financial reports to make decisions about businesses, but these reports do not always provide all the relevant information. In this lesson, you will learn about the limitations of financial reports.
Earning College Credit
Did you know… We have over 220 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.
To learn more, visit our Earning Credit Page
Transferring credit to the school of your choice
Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.
Other chapters within the HSC Business Studies: Exam Prep & Syllabus course
- Nature of Business
- Types of Business
- Business Industries in Australia
- Influences on Businesses in Australia
- Stakeholders in Business
- Business Cycle
- Global Markets in Business
- Management Skills
- Management Approaches
- Management Processes
- Business Planning & Strategy
- Business Forecasting
- Business Strategies & Values
- Operations Management & Inventory Management
- Scheduling in Operations Management Overview
- Supply Chain Management in Business
- Marketing Roles & Objectives
- Types of Markets
- Influences of Marketing in Australia
- Marketing Information & Research
- Marketing Strategy in Business
- Pricing Strategy in Business
- Promotion in Marketing
- Place & Distribution in Business
- International Marketing Basics
- Business Financing in Australia
- Financial Planning & Implementation
- Financial Ratios
- Financial Management Overview
- Global Financial Management
- HRM: Human Resources Management
- Employee Acquisition & Development
- Human Resource Metrics & Measurement
- Employee Separation
- Legal Considerations in Australian HR
- HSC Business Studies Flashcards