Suppose you have just finished your undergraduate education in business administration and are appearing for your first job interview. The interviewer asks you:
You have just one hour to gain a brief understanding of a company’s current performance. What information could you ask for that will help you to have a quick understanding of the company’s performance within a very short time?
What might your answer be? What information could you ask for?
Financial statements are important tools that stakeholders can use to understand the financial health of an organization better and make informed decisions.
For this Discussion, read this week’s resources. Then, consider the purpose of a balance sheet, an income statement, and a cash flow statement concerning their functionality, accuracy, and importance. Also, examine how these financial statements are used by investors, lenders, and corporate managers when making decisions.
Post by Day 3, a 200- to 300-word explanation of balance sheets and income statements concerning functionality, accuracy, and importance. Also, explain how these statements are used in different ways by investors, lenders, and corporate managers when making decisions. In your post, mention whether you have had any experience working with a balance sheet or an income statement to make financial decisions in your personal life or your organization. If so, please describe the experience. If you have not had any experience with working with a balance sheet or an income statement, please explain how you can use your knowledge about these financial statements to make prudent financial decisions in your personal life. Be sure not to disclose the name of any specific organization.