In business, it is important to be able to analyze data and to be able understand what the data means. This is important, because it will help influence your business choices depending on what the information you read states. Data in accounting can come in all different forms, but some examples include income statements, statement of owners' equity, and even balance sheets. For example, when looking at an income statement, you will be able to check both revenue as well as all expenses for a set amount of time (Warren 19). More importantly, from looking at an income statement you will be able to see if the period was profitable, also known as net profit, or if the time was not profitable and resulted in loss, also known as net loss (Warren 19). As a business owner you can use income statements to measure success based upon projected goals. Another important thing to consider when making business decisions are balance sheets. A balance sheet essentially shows a businesses net worth by showing the businesses assets, liabilities, and owner's equity (Warren 22). This information is incredibly invaluable, because it shows a detailed breakdown of assets subtracted by the liabilities to calculate the owner's equity Using a balance sheet, a business owner could determine what their future goals could be. For example, if you wanted to acquire more land for development you could check your balance sheet and see how much free cash you have for investment and you could calculate exactly how much you would want to set aside for development. Overall , there are many different forms of data that business owners can use to help influence day to day decisions, so it's incredibly invaluable to have at least a basic understanding of accounting References: Warren, C. S. (2017). Accounting + Kindly, I need help on this discussion post in which I have to response to in 200 words. Please include citations 1 Demonstrate new learning and/or insight Exhibit technical analysis and critical thinking Promote further discussion and interaction