About This Chapter
Financial Statements for Business - Chapter Summary
These short, engaging lessons are for your use to enhance your knowledge of financial statements for business. Get familiar with the income statement, shareholder equity, and the purpose of financial reporting. Take a look at other lesson material, like:
- Purpose, components and format of a balance sheet
- Purpose and format of the statement of cash flows
- Notes on financial statements
- External audits
- Quick ratio in accounting
- The concept of financial data
Each lesson has its own short, multiple-choice quiz for assessing your progress as you work your way through this chapter. You can monitor your course progress on your dashboard. A test at the end of the chapter will examine your retention of the chapter's highlights.
1. What Are Financial Statements? - Definition, Purpose & Importance
Financial statements are big players in the world of accounting. In this lesson, you will be introduced to each of the financial statements. You will also learn what their role is in the accounting industry, who they are important to and why they are important.
2. 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.
3. 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.
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. The Purpose of Notes on Financial Statements
Financial statements are very important in accounting and finance. In this lesson, you will learn about notes to the financial statements, what information they may give, and why they are important to financial statement users.
6. External Audits of Financial Statements
Financial statements are one of the most heavily relied upon group of reports in the business world, and they must be accurate and reliable. In this lesson, you'll learn about financial statement audits, who performs them, and why they are important.
7. Cost of Goods Sold on an Income Statement: Definition & Formula
Just because you earn revenue doesn't mean you've made a profit. In this lesson, you'll learn about cost of goods sold, including where it fits on an income statement and how to calculate it. A short quiz follows the lesson.
8. Quick Ratio in Accounting: Definition, Formula & Example
This lesson explains what a quick ratio is in accounting. The quick ratio formula is outlined and examples of how a quick ratio can be used are given.
9. Shareholder Equity: Definition & Formula
One of most important things an investor is concerned about is shareholder equity. In this lesson, you'll learn what shareholder equity is and how to calculate it, and then you can test your knowledge with a short quiz.
10. Total Liabilities: Definition & Explanation
Liabilities will often determine whether a business earns a profit or suffers a loss. In this lesson, you'll learn what constitutes total liabilities in business and how to calculate it.
11. What Are Assets? - Definition & Examples
In this lesson, you will learn about assets, the first variable of the basic accounting equation. We will discuss the definition, categories, and classifications of assets.
12. What Is Financial Data? - Definition & Concept
Financial data provides the fundamental building blocks for sound business analysis. In this lesson, you'll learn about some of the primary types of financial data used by managers, investors, and regulators in analyzing a company. A short quiz follows the lesson.
13. What Is Financial Reporting? - Purpose, Statement Examples & Analysis
Financial reporting is a vital part of corporate governance. In this lesson, you'll learn what financial reporting is, its primary components, its purpose, and be provided with some examples. A short quiz follows the lesson.
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Other chapters within the CM Leading & Controlling Exam Study Guide - Certified Manager course
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- Employee Motivation in the Workplace
- Managing Change in the Workplace
- Workplace Conflict
- Organizational Politics at Work
- Managing Workplace Misbehavior
- Types of Workplace Misbehavior
- Privacy in the Workplace
- Time & Stress Management at Work
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- Controlling Operations Costs in Business
- Quality Management in Business
- Inventory Control in Business
- Business Accounting Fundamentals
- Financial Analysis for Business
- Financial Management for Business
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