Application of Financial Statement

RUNNING HEAD: Application of Financial Statement

Brid considert Miller
ACC 557
Dr. GBenedio
March 4, 2012

Abstract
This story talks about how balance tacking is an important crash of the fiscal argumentation. The balance sheet can be employ to fooling life. For poser, the balance sheet used to help iodin see the ways in which angiotensin converting enzyme make mo realiseary decision in his or her life. The balance sheet is a superior tool to have in a melodic phrase. The business manage uses the balance sheet to make decision passim the day, so that the business can race smoothly. Without the balance sheet a business may become harder to manage and the managers who run this business need to understand exactly what the financial statement is saying.
How balance sheet or income statement applies to everyday life
The or so important concept in accounting is that Assets = Liabilities + Owners Equity. An asset is spot own, such as checking account or saving account. Liabilities ar items one has to pay for on a regular basis, for example rent, credit card, or other bills. Owners equity is the difference amidst what one own = what one owe + net worth. extra time one should hope that the net worth will add-on.



The same is true in a business; firms operate to bear a profit in which result will increase in owners equity. A balance sheet is a financial statement that summarizes a companys assets, liabilities, and shareholders equity at a specific point. The balance sheet gives the investors an ideal as what the company owns and owes as well as the amount invested by the shareholders. By applying the balance sheet to everyday life is allowing one to get a handle on the financial strength and capabilities of life. The balance sheet will in addition help one from overspending on credit compared to paying silver to purchase goods. The balance sheet will tell one if one is spending too much money, thus net equity determined. If one takes the assets one have subtracting it from the liabilities they can...If you want to get a full essay, order it on our website: Ordercustompaper.com



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