When looking at a company’s financials, the information can be overwhelming. In today’s blog we will discuss the various forms included in financial statements, what they entail, and why each statement has, it’s the purpose. Further, we will briefly touch on the differences in US GAAP and IFRS reporting standards.
Listed below is a breakdown of financial statements: Note for all of these accounting practices dictate that a line is drawn after a computation, to ensure mathematical accuracy.
13. In report form, assets are line-itemed first and then followed by liabilities and capital.
Cash Flows Statement:
Statement of Cash Flows displays the cash received and the cash spent on business activities. Further, these activities are categorized as operating, investing, and financing.
Mark Lester has over 5- years of experience in the real estate industry and is an active employing broker in the state of Colorado that specializes with investment and business real property sales. Prior to a career in real estate, Mark worked over 10-years in the restaurant industry. Recently, he has consulted business owners and real estate investors with helping them solve issues ranging from marketing, operational, financial, or portfolio strategies. Finally, educationally, the author holds a BA in real estate from Ashford University, in addition to an MS in finance and economics, and MBA from West Texas A&M University.