250 Words document
A company’s financial statements consist of the balance sheet, income statement, and statement of cash flows. Choose the financial statement that you consider most important to a business leader in Saudi Arabia.
Search the internet for an academic or industry-related article. Select an article that relates to your financial statement choice and why you believe it is the most important for business leaders and investors in Saudi Arabia.
For your discussion post, your first step is to summarize the article in two paragraphs describing what you think are the most important points made by the authors (remember to cite the information, as appropriate). For the second step, include the reference listing with a hyperlink to the article. Please note, do not copy the article into your post and limit your summary to two paragraphs. Let me know if you have any questions. Enjoy your search.
Be sure to support your statements with logic and argument, citing all sources referenced. Post your initial response early, and check back often to continue the discussion. Be sure to respond to your peers’ posts as well.
Financial statements are the different formats which have been prescribed by the law (accountancy) to be used for the purpose of financial reporting. Each format communicates a separate aspect of the business. Different Financial Statements are:
In my opinion, the financial statement that I consider most important to a business leader in Saudi Arabia is Statement of Cash flows (also called Cash FLow Statement)
First step is to summarize the article in two paragraphs describing what you think are the most important points made by the authors:
Financial reporting is the way companies show their performance to outside world. The objective behind financial statement analysis is to use the company’s financial statements & other relevant information to make economic decisions. Such an analysis is used to evaluate a company’s past performance & current financial position and project company’s ability to earn profits and future cash flows so that economic decisions like whether to invest in the company's securities or whether to extend bank credit to the company can be taken.
Each statement has its own advantages and limitations. While Income Statement and Cash flow statement both qualify to be the most important financial statement, the qualification needs to be seen from the perspective of the user of the statement ("Which financial statement is the most important?", 2018). If the user is an Investor, then certainly Statement of Cash flows will be the most important financial statement to look at and analyse. Reasons why it will be important from the perspective of the business leaders and investor:
For the second step, include the reference listing with a hyperlink to the article.
Reference listing:
"Which financial statement is the most important?", 2018, retrieved from https://www.accountingtools.com/articles/which-financial-statement-is-the-most-important.html on January 16, 2019.
250 Words document A company’s financial statements consist of the balance sheet, income statement, and statement...
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