Types Of Financial Statements For A Nutrition Label After An Individual

778 Words Oct 27th, 2016 4 Pages
The kind of information that can be found on the financial statement “shows you where a company’s money came from, where it went, and where it is now” (SEC, 2007). Learning how to read it is as easy as reading a nutrition label after an individual has been fully trained. There are 4 types of financial statements available. They are: (1) Balance Sheet, (2) Income Statements, (3) Cash Flow Statements, and (4) Statement of Shareholders Equity, and each one is different.
The balance sheet show assets, liabilities, and shareholders’ equity. Assets is anything that holds value for the company, such as items that can be sold or used by the company. Some “things” that fall into the assets section are property, equipment, trucks, inventory and plants. Anything that can be sold or used as explained above. Liabilities include anything that is owed to others, such as vendors, creditors, rent, and payable wages. The Income Statement is a document that shows you the revenue that was acquired within one year, or a piece of the year. “It presents a summary of the revenues, gains, expenses, losses, and net income or net loss of an entity for a specific period” ("Inc.," n.d.). Cash Flow Statements are “reports a company 's cash receipts and cash payments over a particular period of time. It leaves out transactions that don 't directly affect cash receipts and payments” (Persinos, 2011). The Statement of Shareholders Equity “shows changes in the interests of the company’s shareholders over…

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