Ch 15: Financial Statements for Business

About This Chapter

Our Study.com experts put together the contents of this chapter to boost your understanding of financial statements for business. Discover the purpose and importance of financial statements, the formula for cost of goods sold, and the definition of assets and liabilities.

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.

13 Lessons in Chapter 15: Financial Statements for Business
Test your knowledge with a 30-question chapter practice test
What Are Financial Statements? - Definition, Purpose & Importance

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.

The Balance Sheet: Purpose, Components & Format

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.

What Is an Income Statement? - Purpose, Components & Format

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.

The Statement of Cash Flows: Purpose, Format & Examples

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.

The Purpose of Notes on 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.

External Audits of Financial Statements

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.

Cost of Goods Sold on an Income Statement: Definition & Formula

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.

Quick Ratio in Accounting: Definition, Formula & Example

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.

Shareholder Equity: Definition & Formula

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.

Total Liabilities: Definition & Explanation

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.

What Are Assets? - Definition & Examples

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.

What Is Financial Data? - Definition & Concept

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.

What Is Financial Reporting? - Purpose, Statement Examples & Analysis

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.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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