This posting answers the question: how can I explain financial statements to someone who knows nothing about acounting in a 200 words or more that explains the four financial statements with different commponents of the statements as well as what the statements tell about a business?
Four your convenience, I have attached a formatted MS Word file to this post containing the text below. I have also attached a reference source which may prove helpful towards increasing your understanding of the subject matter.
The Four Principle Financial Statements
Financial statements, otherwise known as financial reports are formal records of a business' financial condition and activities. These statements provide investors and lenders with a reliable basis for evaluating the past performance and future prospects of a company. There are four basic financial statements:
1.Balance sheet: the financial statement that presents a ...
This file contains a formatted MS Word file containing a study on the four financial statements.