Financial Reporting

In: Business and Management

Submitted By teeant24
Words 1649
Pages 7
Financial Reporting Financial Management 320-E1WW
May 26, 2013

Financial reporting is method many organizations most perform in order to find out what their financial standings are. It informs them if they have made a profit, no profit or if a change in allocation of funding needs to be adjusted. This is the job of managers to be able to access this and make changes. Managers in order to do this must have knowledge and the ability to perform properly accounting practices. There are four basic financial statements that manager need to use to answer questions about where the organization stands financially. Those four statements are balance sheet, statement of revenue and expense, statement of fund balance or net worth, and statement of cash flows.
The balance sheet is exactly what its name states. It shows the balance of what the organization owns, owes and what is worth. The balance sheet shows these parameters in a particular point in time, not a period of time. It displays these figures as a as of date. The balance sheet displays in two rows two years of financial data with the most current data in the left hand column. On the balance sheet there are three distinct categories that displayed to be balanced. These areas on the balance sheet are assets, liabilities, and fund balance. Under the asset area there is current assets which equal current assets or cash equivalents, property, plant and equipment assets which equal long term assets and other assets which are noncurrent assets. All of these assets once added will give you a total of what you are worth. Within the balance sheet the second half displays liabilities which are current liabilities, which are paid off within a year and long term debt which is paid over many years. The last section of the balance sheet is fund balances. When fund balance and liabilities are added they should match the…...

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