Assignment 2: Submission—Course Project

FREQUENTLY USED FINANCIAL REPORTS

A financial report is data of the financial schemes and place of a business, individual or other business being (Graham, Harvey, & Rajgopal, 2005). It is conferred in a designed way and in a layout simple to understand and usually involves essential financial statements followed by a management consultation and investigation.

The three financial reports which I would use on a regular basis are:

1. Stipend statement- it displays the business’s income and costs throughout a certain span.

2. Balance sheet- it declares the responsibilities, properties and capital of a business at a certain point in time and explains the business’s net worth (Graham, Harvey, & Rajgopal, 2005).

3. Cash flow statement- it displays motion of cash and cash equal in and out of the business.

Stipend or income statements contain information about the business’s income costs throughout a certain span and indicate how money collected from the trading of items and services before cost are brought out and converted into net income.

Statements they contain

Balance sheet is a financial place of a business that declares capital, properties and responsibilities of the said business at a certain point in time and explains the business net worth. It shows the balance of the earnings and costs over a stipulated time (Levine, Loayza, & Beck, 2000).

Stipend statement might help me to assess the business’s financial execution and communicate with intended external groups about the business’s achievement managing the company through publishing financial reports (Levine, Loayza, & Beck, 2000).

Balance sheet may help in the tracking of the expenditures and incomes, it may also help me to indicate what the business possesses and what it owes over the date stipulated through the business properties.

Cash flow is the essence of the business and it may later become clearance for items that build the business’s operating (Levine, Loayza, & Beck, 2000). For instance, costs like raw materials among other running costs. Cash flow contains motion of cash and cash equals in and out of the business.

REFERENCES

Graham, J. R., Harvey, C. R., & Rajgopal, S. (2005). The economic implications of corporate financial reporting. Journal of accounting and economics, 40(1), 3-73.

Levine, R., Loayza, N., & Beck, T. (2000). Financial intermediation and growth: Causality and causes. Journal of monetary Economics, 46(1), 31-77.