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ACC 557 Application of Financial Statement: Balance Sheet

Balance Sheet is selected in this discussion.

-Select either the balance sheet or income statement and explain how the use of it may be applied to your everyday life.
-Using the same concept selected above, discuss how a business manager may benefit from an understanding of this statement.
-Discuss how your understanding of the balance sheet and income statement may be applied to your current position of management.

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Balance Sheet

The balance sheet is a great tool for living. Why? It is a resource list and an obligation list and so it can be a valuable planning tool. Armed with a list of assets, such as the bank balance, any amounts owed to you from friends, family or business transactions, inventory of items on hand, prepaid insurance policies or rent, long term assets such as car, home, boat, tractor and so forth, you can get a pretty good view of your estate. This view then permits you to see if you have too many assets in one area and not enough in another. For instance, many advisors warn against having all your wealth in your home or in stock of your employer. You should diversify in case something were to happen to the neighborhood and impact the value of the home or the employer should run into competitive pressure and get hurt.

The balance sheet also presents a summary of obligations such as ...

Solution Summary

Your tutorial is 581 words plus three references and discusses personal uses for a balance sheet, how a manager might use the balance sheet a bit differently and how understanding the financial statements helps me run my business.

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