Financial statements are written records that convey the business activities and the financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes. There are many uses for financial statements and the information contained in each financial statement can communicate important information to the user.

• Name the three main financial statements that we discussed in this course.
• Choose one of the financial statements and explain the following in your own words:
  • Describe the important aspects of the statement you have chosen.
  • Show how one completes the statement.
  • Explain what each part of the statement shows.
  • Outline how this financial statement works with the other statements.
  • Give examples of how and why internal users and external users may find this statement useful.

You will want to make sure you include good detail as if you are instructing another student on how to complete the financial statement you have chosen. Be sure to define any accounting terms you may use (i.e., Asset, Liabilities, Revenues, Expenses, etc..) Make sure to put your responses in your own words to demonstrate your understanding.